xAI, the artificial intelligence startup founded by Elon Musk, has raised $10 billion in a mix of debt and equity financing, Morgan Stanley confirmed Monday.
In a post on X (formerly Twitter), the financial services firm stated that xAI secured $5 billion in debt and another $5 billion through a strategic equity transaction. Morgan Stanley noted that this hybrid funding structure reduces the company’s overall cost of capital while unlocking broader access to funding.
“The proceeds will support xAI’s continued development of cutting-edge AI solutions, including one of the world’s largest data centers and its flagship Grok platform,” the post read.
xAI has not yet issued a public statement regarding the funding.
This latest investment follows a $6 billion funding round in December, which featured major institutional backers such as Andreessen Horowitz, BlackRock, Fidelity, Lightspeed, Nvidia, AMD, and Kingdom Holdings, among others.
With this new raise, xAI has now brought in approximately $17 billion in total capital, positioning itself as a major contender in the rapidly evolving AI arms race.
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