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Will Musk vs. Trump affect xAI’s $5B debt deal?
While the online feud between Elon Musk and President Donald Trump seemed to drive traffic to Musk’s social media platform X (formerly Twitter), it could also create issues for the platform’s parent company xAI.
Musk merged X and xAI earlier this year, with Bloomberg reporting this week that he was looking to raise $5 billion in debt (as well as a reported $300 million in a secondary sale) to fund the combined company.
That’s led to some awkward moments as Musk’s relationship with his former ally Trump seemed to disintegrate. In fact, The Wall Street Journal reports that on Thursday afternoon, Morgan Stanley had gathered xAI executives to pitch potential investors as Musk and Trump were posting angrily about each other on their respective social networks.
Morgan Stanley had reportedly hoped to sell the debt at around 100 cents on the dollar, but a trader told the WSJ it was trading at 95 cents on the dollar at times on Thursday. Investors also reportedly said that due to declining prices, Morgan Stanley may need to offer additional incentives, such as an increased interest rate.