xAI raises $10 billion in debt and equity

xAI raised $10 billion in fresh financing, split evenly between debt and equity, Morgan Stanley confirmed on 1 July 2025. Half of the total came through secured notes and term loans arranged by the bank, which described the debt tranche as oversubscribed by “prominent” global investors; the other $5 billion came through a separate strategic equity investment. Neither xAI nor Morgan Stanley named the equity participants, and no valuation was disclosed at the time.

The raise came just over six months after xAI’s $6 billion Series C, and unlike that round — or the Series B before it and the Series E that followed in January 2026 — it was never given a series letter in company or press material, reflecting its hybrid debt-and-equity structure rather than a conventional priced equity round. xAI said the money would support its infrastructure build-out, including “one of the world’s largest data centres,” and continued development of Grok.

Later reporting filled in a valuation: coverage in September 2025 of a further, larger fundraising effort — one that would eventually value the company at up to $200 billion — described this July round as having brought xAI’s valuation to roughly $150 billion. The round came three months after xAI’s merger with Elon Musk’s X Corp, folding the social network into the AI company, and preceded a run of further capital-raising through the second half of 2025 that culminated in the $20 billion Series E.