The $5 billion debt sale was launched Monday (June 2) through Morgan Stanley, with commitments due June 17, and its proceeds will be used for general corporate purposes, Bloomberg reported Monday, citing an unnamed source.
The $300 million share sale will allow staffers to sell their shares to new investors, the Financial Times (FT) reported Monday, citing unnamed sources. It values xAI at $113 billion, equal to the valuation it achieved in March when it acquired Musk’s social media platform, X, according to the report.
XAI did not immediately reply to PYMNTS’ request for comment on the two reports.
Musk announced xAI’s acquisition of X March 28, saying the deal valued xAI at $80 billion and X at $33 billion ($45 billion minus $12 billion in debt).
“XAI and X’s futures are intertwined,” Musk wrote in a March 28 post on X. “Today, we officially take the step to combine the data, models, compute, distribution and talent. This combination will unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach.”
It was reported in November that xAI raised $5 billion in a funding round that valued it at $50 billion.
That financing brought the total amount raised by xAI at that point in 2024 to $11 billion, while the funding round more than doubled the company’s valuation from the $24 billion at which it was valued in spring 2024.
XAI said at the time that it planned to use that funding to add another 100,000 Nvidia chips for training its AI models.
Monday’s reports came about a week after Musk said he is back to working 24/7 at his companies and “super focused” on them after months of heading the Department of Government Efficiency (DOGE) created by President Donald Trump.
“Back to spending 24/7 at work and sleeping in conference/server/factory rooms,” Musk wrote in a May 24 post on X. “I must be super focused on X/xAI and Tesla (plus Starship launch next week), as we have critical technologies rolling out.”
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