Friday, 10 Oct 2025
  • Contact
  • Privacy Policy
  • Terms & Conditions
  • DMCA
logo logo
  • World
  • Politics
  • Crime
  • Economy
  • Tech & Science
  • Sports
  • Entertainment
  • More
    • Education
    • Celebrities
    • Culture and Arts
    • Environment
    • Health and Wellness
    • Lifestyle
  • 🔥
  • Trump
  • VIDEO
  • House
  • White
  • ScienceAlert
  • Trumps
  • Watch
  • man
  • Health
  • Season
Font ResizerAa
American FocusAmerican Focus
Search
  • World
  • Politics
  • Crime
  • Economy
  • Tech & Science
  • Sports
  • Entertainment
  • More
    • Education
    • Celebrities
    • Culture and Arts
    • Environment
    • Health and Wellness
    • Lifestyle
Follow US
© 2024 americanfocus.online – All Rights Reserved.
American Focus > Blog > Economy > Elon Musk’s feud with Donald Trump muddies xAI debt raising for Morgan Stanley
Economy

Elon Musk’s feud with Donald Trump muddies xAI debt raising for Morgan Stanley

Last updated: June 6, 2025 7:10 pm
Share
Elon Musk’s feud with Donald Trump muddies xAI debt raising for Morgan Stanley
SHARE

Elon Musk’s artificial intelligence company xAI was on the verge of securing a $5 billion debt financing package to support its expansion plans. However, a sudden fallout between Musk and US President Donald Trump has thrown a wrench into the works. The relationship breakdown has raised concerns among investors and could potentially impact the terms of the financing deal.

Prior to the public feud, investors had shown strong interest in the debt offering, with over $4 billion in orders placed for the deal. The close ties between Musk and Trump had initially bolstered confidence in the investment opportunity. However, following their public exchange, the situation has become more complicated. Musk’s bankers at Morgan Stanley are now faced with the challenge of navigating the fallout and assessing the potential implications for the financing package.

The debt financing was expected to be split between fixed- and floating-interest rate loans, as well as a corporate bond. Despite the discord between Musk and Trump, the $5 billion capital raising is still moving forward. However, there are concerns that the fallout could lead to higher costs for xAI in securing the financing.

Investors who were conducting due diligence on the deal had raised questions about the terms of the agreement, including the amount of debt xAI can take on and the security provided for the loan. Some investors had even expressed hesitation about proceeding with the deal unless certain conditions were met.

Despite the challenges, xAI remains optimistic about its growth prospects. The company recently met with investors to share projections for its business and discuss its potential in the AI market. While xAI is currently operating at a loss and has limited revenue, investors are banking on the company’s equity valuation and its ability to secure lucrative corporate contracts in the future.

See also  Elon Musk Announces He Is Stepping Down From Trump Administration |

In light of the fallout with Trump, the pricing and terms of the debt financing deal may be subject to renegotiation. Morgan Stanley is working towards finalizing the terms of the agreement by a deadline of June 17. The situation remains fluid, and xAI is working to address investor concerns and secure the necessary funding for its expansion plans.

Despite the challenges and uncertainties, xAI remains confident in its long-term prospects and is committed to delivering value to its investors. The company’s leadership is focused on navigating the current situation and ensuring that xAI emerges stronger from the fallout with Trump.

This article was originally published on the Financial Times and has been rewritten for a WordPress platform while maintaining the key points and structure of the original content.

TAGGED:debtDonaldElonFeudMorganmuddiesMusksRaisingStanleyTrumpxAI
Share This Article
Twitter Email Copy Link Print
Previous Article Inside the Secret Meeting Where Mathematicians Struggled to Outsmart AI Inside the Secret Meeting Where Mathematicians Struggled to Outsmart AI
Next Article Boy, 17, shot – possibly by Citi Bike-riding gunman – hours after 2 other teens hurt in gun violence: cops Boy, 17, shot – possibly by Citi Bike-riding gunman – hours after 2 other teens hurt in gun violence: cops
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Popular Posts

Whitney Rose Postpones ‘Watch What Happens Live’ Appearance

Whitney Rose, star of The Real Housewives of Salt Lake City, will not be making…

October 9, 2024

NWSL team of the week: Barbra Banda, Temwa Chawinga start off dominating for Orlando Pride, K.C. Current

The 2025 National Women's Soccer League season kicked off in style over the weekend, with…

March 17, 2025

New Colorado trans rights protections signed into law by Jared Polis

Colorado Governor Signs Legislation Protecting Transgender Rights Colorado Governor Jared Polis signed into law a…

May 17, 2025

Healthcare And The Trump Administration’s First 100 Days

It has been nearly 100 days since President Trump assumed the office of the presidency,…

April 28, 2025

Japan’s ruling party suffers record low result in Tokyo poll

Unlock the Editor’s Digest for free Roula Khalaf, Editor of the FT, selects her favourite…

June 22, 2025

You Might Also Like

Should You Buy Novartis Stock Before October 28?
Economy

Should You Buy Novartis Stock Before October 28?

October 10, 2025
Report: Thune Betrays MAGA, Begs Trump Not to Lay Off Government Employees During Shutdown, Wastes Once-in-a-Lifetime Opportunity
Politics

Report: Thune Betrays MAGA, Begs Trump Not to Lay Off Government Employees During Shutdown, Wastes Once-in-a-Lifetime Opportunity

October 10, 2025
I’m a Financial Advisor: People Always Regret Doing These 5 Things With Their Roth IRA
Economy

I’m a Financial Advisor: People Always Regret Doing These 5 Things With Their Roth IRA

October 10, 2025
President Trump DENIED Nobel Peace Prize Despite Ending EIGHT Wars as Nobel Committee Head Offers an Outrageous Reason for Snub – White House Responds | The Gateway Pundit | by Cullen Linebarger
Politics

President Trump DENIED Nobel Peace Prize Despite Ending EIGHT Wars as Nobel Committee Head Offers an Outrageous Reason for Snub – White House Responds | The Gateway Pundit | by Cullen Linebarger

October 10, 2025
logo logo
Facebook Twitter Youtube

About US


Explore global affairs, political insights, and linguistic origins. Stay informed with our comprehensive coverage of world news, politics, and Lifestyle.

Top Categories
  • Crime
  • Environment
  • Sports
  • Tech and Science
Usefull Links
  • Contact
  • Privacy Policy
  • Terms & Conditions
  • DMCA

© 2024 americanfocus.online –  All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?