After the conflict between Musk and Trump, Morgan Stanley seeks to find debt buyers for xAI.

On June 10, Bloomberg reported that Morgan Stanley is reaching out to a broader investor base to boost demand for a $5 billion debt issuance by Elon Musk’s artificial intelligence startup xAI Corp. The deal also sheds light on the impact of the conflict between Musk and US President Donald Trump. Morgan Stanley had received more than $3.5 billion in subscription orders when it launched the debt offering early last week, according to people familiar with the matter. Some investors see this as a sign that the deal will soon be oversubscribed — a goal that has usually been easily achieved in previous Musk-related financings. However, as of Monday, demand had only risen to about $5 billion, so Morgan Stanley began reaching out to some of the microlenders that had not been approved to participate last week.