While the online fight in between Elon Musk and President Donald Trump seemed to drive traffic to Musks social media platform X (formerly Twitter), it could likewise develop concerns for the platforms parent business xAI.Musk combined X and xAI earlier this year, with Bloomberg reporting today that he was looking to raise $5 billion in financial obligation (as well as a reported $300 million in a secondary sale) to fund the combined company.Thats resulted in some uncomfortable moments as Musks relationship with his previous ally Trump appeared to break down.
The Wall Street Journal reports that on Thursday afternoon, Morgan Stanley had gathered xAI executives to pitch prospective financiers as Musk and Trump were posting angrily about each other on their respective social networks.Morgan Stanley had actually reportedly hoped to sell the financial obligation at around 100 cents on the dollar, however a trader informed the WSJ it was trading at 95 cents on the dollar at times on Thursday.
Investors likewise supposedly said that due to decreasing costs, Morgan Stanley may require to offer extra incentives, such as an increased interest rate.