Musk to Offload $300 Million in Shares and a Whopping $5 Billion in Debt
In a significant move, Elon Musk's AI startup, AIx, has announced plans to raise $5 billion through a bond issuance. According to reports by Bloomberg, Morgan Stanley bank is handling the high-yield bond issuance. The package includes floating-rate loans, fixed-rate loans, and secured bonds, but specific details about the interest rates, demand levels, or Morgan Stanley’s role in the high-yield bond issuance remain undisclosed.
The current deal confirms the valuation determined in March 2025 when AIx acquired X, a group including the former Twitter (now blocked in Russia), for $113 billion. This acquisition marked Musk's departure from X, which he sold to his AI startup for $45 billion.
Musk founded AIx in 2023 with the goal of creating an "ultra-truth-seeking AI." Since then, the company has made strides in the AI sector, including the development of Grok, a competitor to OpenAI's chatbot ChatGPT.
Meanwhile, Musk's tenure as the head of the Department of Government Effectiveness (DOGE) at the White House came to an end in May. His departure followed conflicts with ministers and criticism of key points in the Trump administration's policy, particularly the tax cut and immigration control bill, which Musk called a "massive spending bill" that increases the federal deficit and "undermines the work" of DOGE.
In addition to the bond issuance, AIx is expected to conduct a larger funding round simultaneously, offering new shares to external investors. The company is also reportedly launching a tender offer to sell shares worth $300 million.
It's important to note that detailed information about the $5 billion bond issuance, such as the interest rates, demand, or Morgan Stanley’s involvement, is not publicly available as of the current date. Such information might be available in detailed bond offering documents, official company press releases, or investment banking reports not captured in the search results.
The recent developments in AIx underscore Musk's continued influence and investment in the AI sector, despite his departure from the White House and the controversies surrounding his public statements. As AIx moves forward with its ambitious plans, it will be interesting to see how the market responds to this significant bond issuance.
[1] Edison International’s long-term debt figures and some issuance/redemption activity as of mid-2025, but no connection to AIx or Morgan Stanley or the $5 billion deal. [2] Perella Weinberg Partners’ advisory transactions, which list various clients and deals but do not mention AIx, Morgan Stanley, or a $5 billion high-yield bond issuance. [3] Market data sources and CLO issuance searches that do not mention AIx or the specified bond issuance. [4] No direct financial details related to AIx's $5 billion bond issuance were found in the search results.
- Given the recent acquisition of X, AIx's new finance undertakings, which include a $5 billion bond issuance, a larger funding round, and a $300 million share tender offer, signify Elon Musk's continued dedication to the business sector, particularly in the realm of technology and AI.
- As AIx proceeds with its groundbreaking plans, such as the development of Grok, and the upcoming high-yield bond issuance, it remains uncertain if the widespread interest in technology-focused finance will translate into substantial demand for these ventures, given the undisclosed details about the bond issuance or Morgan Stanley's involvement.
