Elon Musk is rapidly expanding his X-branded world with his artificial intelligence start-up business xAI reportedly trying to raise US$9.3 billion (A$14.4 billion) to replenish dwindling cash reserves.
xAI is seeking $4.3 billion through an equity investment and on track to close a $5 billion debt raising, according to media reports.
The startup, which makes the Grok chatbot, is in talks about an equity raising, according to a Bloomberg News article, which cited private information the company shared with investors.
This is in addition to debt funding led by Morgan Stanley, which a Reuters story indicated the company was on track to close despite tepid investor demand, citing people familiar with the matter.
X appears throughout the business empire of the world's richest man with Musk changing Twitter's name to X after he bought the social media site for $44 billion in 2022 and he owns 42% of aerospace manufacturer and space transport services company SpaceX (Space Exploration Technologies Corp).
xAI raised $14 billion in equity between its founding in 2023 and the launch of the debt deal earlier this year and it to use about $13 billion in 2025, Bloomberg reported.
The $5 billion debt sale, which includes a floating-rate term loan, a fixed-rate loan and secured bonds, will be allocated to investors on Wednesday.
xAI was valued at $80 billion at the end of the first quarter, up from $51 billion at the end of 2024, has been trying to issue shares which value the company at more than $120 billion and some investors believe it is worth up to $200 billion, Reuters reported.
Musk has a net worth estimated at $230 billion to $250 billion, depending on the valuation of his stakes in X, SpaceX, electric vehicle maker Tesla, and other business interests.
