The online feud between Elon Musk and former President Donald Trump has definitely caught people’s attention and driven traffic to Musk’s social media platform, X (formerly Twitter). However, this high-profile clash could also pose challenges for Musk’s broader vision with xAI, the AI-focused company he’s been building.
Earlier this year, Musk merged X and xAI into a single entity, aiming to create a powerful new player in the tech space. Recently, Bloomberg reported that Musk is seeking to raise around $5 billion in debt, along with a secondary sale of approximately $300 million, to fund the combined venture.
These developments have led to some awkward moments, especially as Musk’s relationship with Trump appears to have soured. The Wall Street Journal noted that on a Thursday afternoon, Morgan Stanley held meetings with xAI executives to pitch potential investors — all while Musk and Trump were exchanging heated posts on social media.
Initially, Morgan Stanley hoped to sell the debt at par value—about 100 cents on the dollar. However, a trader told the WSJ that the debt was trading at around 95 cents on the dollar at times, indicating some investor hesitation. With prices declining, investors suggested that Morgan Stanley might need to sweeten the deal with higher interest rates or other incentives to attract buyers.
