Elon Musk’s AI Startup Set To Get Debt Backing From TPG
The firm is investing in a loan that is part of a debt offering for xAI, which Morgan Stanley started pre-marketing in recent weeks.
TPG Angelo Gordon is an anchor investor in a debt package for Elon Musk’s artificial intelligence startup, xAI Corp., according to people with knowledge of the matter.
The firm is investing in a loan that is part of a debt offering for xAI, which Morgan Stanley started pre-marketing in recent weeks, said the people, who asked not to be identified discussing private information.
Representatives for TPG and Morgan Stanley declined to comment. A representative for xAI didn’t respond to a request for comment.
The debt package is one of several fundraising efforts across Musk’s companies, which come as the billionaire pivots away from politics and refocuses on his businesses.
Musk recently merged xAI with his social-networking platform X, formerly known as Twitter Inc., into a combined company called XAI Holdings. He has been investing heavily in its Memphis data center, called Colossus, which the debt sale could help finance.
The debt package includes a floating-rate term loan, a fixed-rate term loan and senior secured notes, Bloomberg previously reported.
Early pricing discussions are 7 percentage points over the benchmark rate for the floating-rate term loan and a roughly 12% yield on the senior notes. The proceeds from the debt will go toward general corporate purposes, with commitments due June 17.
