xAI Secures $10 Billion in Debt and Equity Financing for AI Advancements

Elon Musk’s company xAI has secured $10 billion in the form of debt and equity, as confirmed by Morgan Stanley on Monday.

In a **post on X**, the financial institution announced that xAI has raised $5 billion through debt financing and an additional $5 billion through a separate strategic equity deal.

“The combination of both borrowed and equity funds allows for a reduction in the overall capital cost and significantly enhances the volume available to xAI. These resources will be directed towards the ongoing advancement of xAI in cutting-edge artificial intelligence technologies. Specifically, they will contribute to the establishment of one of the largest data centers globally and the flagship platform Grok,” reported Morgan Stanley.

This latest funding round comes after the company raised **$6 billion** in December from a number of prominent investors, including Andreessen Horowitz, Blackrock, Fidelity, Lightspeed, MGX, Morgan Stanley, OIA, QIA, Sequoia Capital, Valor Equity Partners, Vy Capital, Nvidia, AMD, and the Saudi conglomerate Kingdom Holdings.

As a result of this new financing round, xAI’s total capital has increased to approximately $17 billion.

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[Source](https://techcrunch.com/2025/07/01/xai-raises-10b-in-debt-and-equity/)