Morgan Stanley is shopping the debt for xAI with a double-digit interest rate, according to people familiar with early pricing discussions. The financing could help Musk continue to spend aggressively on AI infrastructure as he builds out a massive data centre in Memphis, Tennessee.
The debt package included a floating-rate term loan, a fixed-rate term loan and senior secured notes, said the people, who are not authorised to share the information publicly. The proceeds will go toward general corporate purposes, with commitments due June 17.
Early pricing discussions were 7 percentage points over the benchmark rate for the floating-rate term loan and a roughly 12 per cent yield on the senior notes, different people with knowledge of the matter said. The debt sale already garnered demand in excess of US$3.5 billion, they added.
A representative for xAI declined to comment. Morgan Stanley did not immediately provide a comment.
