Whereas the net feud between Elon Musk and President Donald Trump appeared to drive traffic to Musk’s social media platform X (previously Twitter), it may additionally create points for the platform’s dad or mum firm xAI.
Musk merged X and xAI earlier this yr, with Bloomberg reporting this week that he was seeking to elevate $5 billion in debt (in addition to a reported $300 million in a secondary sale) to fund the mixed firm.
That’s led to some awkward moments as Musk’s relationship together with his former ally Trump appeared to disintegrate. In truth, The Wall Street Journal reports that on Thursday afternoon, Morgan Stanley had gathered xAI executives to pitch potential buyers as Musk and Trump had been posting angrily about each other on their respective social networks.
Morgan Stanley had reportedly hoped to promote the debt at round 100 cents on the greenback, however a dealer informed the WSJ it was buying and selling at 95 cents on the greenback at instances on Thursday. Traders additionally reportedly mentioned that as a result of declining costs, Morgan Stanley may have to supply further incentives, resembling an elevated rate of interest.