After Elon Musk returned to his business empire and distanced himself from politics, his companies quickly launched a series of financing efforts, including xAI initiating a $300 million stock sale plan and a $5 billion debt sale. Additionally, the brain-computer interface company Neuralink raised $650 million in its Series E funding.
xAI Stock and Bond Surge
On Monday, according to media reports, Elon Musk's xAI is launching a $300 million share sale plan that will allow employees to sell shares to new investors. In this transaction, the company was valued at $113 billion. This is in line with the price of Musk's xAI when it acquired his social media platform X in March of this year.
This year, Musk merged xAI with his social platform X to form a new company called XAI Holdings. The acquisition deal in March valued the entire group at $113 billion, with xAI valued at $80 billion and X valued at $33 billion. Musk acquired X (then Twitter) for $44 billion in October 2022.
Insiders point out that this secondary stock sale, known as a "tender offer," is expected to be followed by a larger round of financing, at which time the company will issue new shares to external investors.
In April, media reports indicated that XAI was in talks with investors to raise about $20 billion for its newly merged artificial intelligence startup and social media business, highlighting the market's enthusiasm for artificial intelligence and Musk's influence.
In addition, Musk has launched a $5 billion debt sale for xAI. According to media reports, Morgan Stanley is seeking debt financing for xAI, and this funding could help Musk continue to invest heavily in AI infrastructure, especially in building a large data center called Colossus in Memphis.
Media reports citing informed sources reveal that this debt financing plan includes Class B term loans, fixed-rate term loans, and senior secured notes. The funds will be used for general corporate purposes, with the maturity date of the commitment being June 17.
xAI declines to comment on the above message.
Regarding the merger of xAI and X into one company, Musk previously stated that this conglomerate would enable his two companies to achieve synergies by integrating models, computing power, distribution channels, and talent. For example, AI developers can better utilize data from social media platforms to train their models and reach their user base.
Musk did not further disclose the specific structure of the merger deal between xAI and X in March. Analysts say that this opaque deal allows X to leverage the rising valuation of xAI for support.
Musk founded xAI in 2023 to challenge Sam Altman's OpenAI, as well as other big tech companies. xAI, an AI startup, was valued at $45 billion in a $500 million private funding round late last year. Musk also granted a 25% stake in xAI last year to investors who supported his acquisition of Twitter.
xAI soon launched the Grok chatbot and built the Colossus supercomputer cluster, one of the largest AI data center projects in the United States. In addition to competing with big tech companies and Grog's sometimes "rugged" image, Musk has also signed a number of cooperation agreements. Last month, Microsoft announced that it was making xAI models available to its cloud computing customers, while messaging app Telegram also agreed to distribute Grok to its 1 billion users.
Elon Musk revealed on May 20 that his Memphis data center has deployed 200,000 GPUs for training AI systems, and he plans to add another 1 million GPUs at a nearby location.
Neuralink raises $650 million
According to media reports, Musk has raised $650 million for his brain-machine interface company Neuralink, with a valuation of $9 billion, excluding this new investment.
Neuralink was valued at $3.5 billion in its last funding round, which took place in 2023.
Musk returns from DOGE to the business empire
Elon Musk spent several months serving as a senior advisor to Trump, frequently accompanying him to events, and has provided strong support for Trump's 2024 presidential campaign, being one of his main financial backers. Musk's position at the Department of Government Efficiency (DOGE) ended last week, during which he introduced a large-scale government spending cut plan that not only sparked widespread criticism of him personally but also raised concerns about the performance of his company.
This series of financing occurred after Musk stepped back from his role in the Trump administration responsible for cutting administrative expenditures. Analysts have pointed out that Musk seems eager to refocus on his various businesses. Since Trump took office, the stock price of Tesla, where Musk serves as CEO, has dropped by 20%.
Musk previously stated that after his company was affected due to its connections with President Trump, he would refocus on his business landscape. At the end of last month, Musk wrote on X:
Back to 24-hour work mode, spending the night in the conference room / server room / factory. I have to fully focus on X/xAI and Tesla. Because we are in a critical phase of technology release.
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After Musk stepped down from DOGE, his companies welcomed a wave of financing: xAI issued both stocks and bonds, while Neuralink also raised funds.
Written by: He Hao, Wall Street Insight
After Elon Musk returned to his business empire and distanced himself from politics, his companies quickly launched a series of financing efforts, including xAI initiating a $300 million stock sale plan and a $5 billion debt sale. Additionally, the brain-computer interface company Neuralink raised $650 million in its Series E funding.
xAI Stock and Bond Surge
On Monday, according to media reports, Elon Musk's xAI is launching a $300 million share sale plan that will allow employees to sell shares to new investors. In this transaction, the company was valued at $113 billion. This is in line with the price of Musk's xAI when it acquired his social media platform X in March of this year.
This year, Musk merged xAI with his social platform X to form a new company called XAI Holdings. The acquisition deal in March valued the entire group at $113 billion, with xAI valued at $80 billion and X valued at $33 billion. Musk acquired X (then Twitter) for $44 billion in October 2022.
Insiders point out that this secondary stock sale, known as a "tender offer," is expected to be followed by a larger round of financing, at which time the company will issue new shares to external investors.
In April, media reports indicated that XAI was in talks with investors to raise about $20 billion for its newly merged artificial intelligence startup and social media business, highlighting the market's enthusiasm for artificial intelligence and Musk's influence.
In addition, Musk has launched a $5 billion debt sale for xAI. According to media reports, Morgan Stanley is seeking debt financing for xAI, and this funding could help Musk continue to invest heavily in AI infrastructure, especially in building a large data center called Colossus in Memphis.
Media reports citing informed sources reveal that this debt financing plan includes Class B term loans, fixed-rate term loans, and senior secured notes. The funds will be used for general corporate purposes, with the maturity date of the commitment being June 17.
xAI declines to comment on the above message.
Regarding the merger of xAI and X into one company, Musk previously stated that this conglomerate would enable his two companies to achieve synergies by integrating models, computing power, distribution channels, and talent. For example, AI developers can better utilize data from social media platforms to train their models and reach their user base.
Musk did not further disclose the specific structure of the merger deal between xAI and X in March. Analysts say that this opaque deal allows X to leverage the rising valuation of xAI for support.
Musk founded xAI in 2023 to challenge Sam Altman's OpenAI, as well as other big tech companies. xAI, an AI startup, was valued at $45 billion in a $500 million private funding round late last year. Musk also granted a 25% stake in xAI last year to investors who supported his acquisition of Twitter.
xAI soon launched the Grok chatbot and built the Colossus supercomputer cluster, one of the largest AI data center projects in the United States. In addition to competing with big tech companies and Grog's sometimes "rugged" image, Musk has also signed a number of cooperation agreements. Last month, Microsoft announced that it was making xAI models available to its cloud computing customers, while messaging app Telegram also agreed to distribute Grok to its 1 billion users.
Elon Musk revealed on May 20 that his Memphis data center has deployed 200,000 GPUs for training AI systems, and he plans to add another 1 million GPUs at a nearby location.
Neuralink raises $650 million
According to media reports, Musk has raised $650 million for his brain-machine interface company Neuralink, with a valuation of $9 billion, excluding this new investment.
Neuralink was valued at $3.5 billion in its last funding round, which took place in 2023.
Musk returns from DOGE to the business empire
Elon Musk spent several months serving as a senior advisor to Trump, frequently accompanying him to events, and has provided strong support for Trump's 2024 presidential campaign, being one of his main financial backers. Musk's position at the Department of Government Efficiency (DOGE) ended last week, during which he introduced a large-scale government spending cut plan that not only sparked widespread criticism of him personally but also raised concerns about the performance of his company.
This series of financing occurred after Musk stepped back from his role in the Trump administration responsible for cutting administrative expenditures. Analysts have pointed out that Musk seems eager to refocus on his various businesses. Since Trump took office, the stock price of Tesla, where Musk serves as CEO, has dropped by 20%.
Musk previously stated that after his company was affected due to its connections with President Trump, he would refocus on his business landscape. At the end of last month, Musk wrote on X:
Back to 24-hour work mode, spending the night in the conference room / server room / factory. I have to fully focus on X/xAI and Tesla. Because we are in a critical phase of technology release.