Elon Musk’s AI startup xAI boosts bond yields to 12.5% in $5B debt raise amid weak investor demand - Tech Startups

Elon Musk’s AI startup xAI boosts bond yields to 12.5% in $5B debt raise amid weak investor demand - Tech Startups

Elon Musk’s AI startup xAI is increasing the yield on its $5 billion debt offering, signaling a cautious response from investors, Reuters reported on Friday. The update follows a Bloomberg report earlier this week that xAI is also seeking to […] The post Elon Musk’s AI startup xAI boosts bond yields to 12.5% in $5B debt raise amid weak investor demand first appeared on Tech Startups.

Musk’s xAI Raises Debt Yields to 12.5% After Failing to Attract Enough Investors - Tech

Elon Musk’s artificial intelligence startup, xAI, is raising the stakes in its $5 billion debt offer as it faces underwhelming investor appetite.  According to a source close to the matter, xAI is now offering a 12.5% fixed yield on $3 billion in bonds and an additional 12.5% on a $1 billion term loan.  The same rate also applies to a separate $1 billion term loan B, though this one is being priced at a steep discount, just 96 cents on the dolla…

Musk’s xAI investors face deadline - CEO North America

Today is the final opportunity for investors to get on board with Elon Musk’s artificial intelligence startup, xAI Corp. Commitments were initially due on Tuesday, but Morgan Stanley has extended the deadline. As the deadline approaches, Musk’s team and Morgan Stanley have offered more favorable pricing on its $5 billion debt offering. As of now, the package includes $3 billion in bonds with a 12.5% yield, a $1 billion fixed-rate term loan with …