Elon Musk's xAI has completed a $5 billion debt raise alongside a separate $5 billion strategic equity investment, Morgan Stanley said on Monday, as the startup looks to expand its AI infrastructure through data centres amid intensifying competition in the industry.

Billionaire Elon Musk's xAI has completed a $5B debt raise along with a separate $5B strategic equity investment, according to Morgan Stanley (NYSE:MS) The $5B in debt consists of financing of secured notes and term loans,

Elon Musk's xAI has raised a total of $10 billion in debt and equity, partly to fund the development of more data center capacity. Revealed in a post to X by Morgan Stanley, the funding is comprised of $5bn in secured notes and term loans, along with $5bn in "strategy equity investment."