According to a report by Jin10 on June 18, Deep Tide TechFlow news states that Elon Musk's xAI company is expected to complete a $5 billion debt financing, with limited investor demand and a coverage ratio of 1.5 times. The allocation of funds will take place on Wednesday. Musk's xAI costs are rising, with monthly expenses of $1 billion. The company is trying to raise $9.3 billion.
Elon Musk's artificial intelligence startup xAI is attempting to raise $9.3 billion through debt and equity financing, but according to the terms of the deal shared with investors, the company plans to spend more than half of the funds within the next three months before the money even hits the bank. The speed at which the company raises funds and consumes cash starkly illustrates the unprecedented demand for capital in the AI industry, as well as the relatively modest revenue it has generated so far, at least in the case of xAI. Sources reveal that based on the company's leveraged cash flow, it is expected to consume about $13 billion during the year 2025, which is over $1 billion per month. As a result, the company's extensive fundraising efforts are barely keeping pace with its spending.
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Sources: Musk's xAI company is expected to complete $5 billion in debt financing.
According to a report by Jin10 on June 18, Deep Tide TechFlow news states that Elon Musk's xAI company is expected to complete a $5 billion debt financing, with limited investor demand and a coverage ratio of 1.5 times. The allocation of funds will take place on Wednesday. Musk's xAI costs are rising, with monthly expenses of $1 billion. The company is trying to raise $9.3 billion. Elon Musk's artificial intelligence startup xAI is attempting to raise $9.3 billion through debt and equity financing, but according to the terms of the deal shared with investors, the company plans to spend more than half of the funds within the next three months before the money even hits the bank. The speed at which the company raises funds and consumes cash starkly illustrates the unprecedented demand for capital in the AI industry, as well as the relatively modest revenue it has generated so far, at least in the case of xAI. Sources reveal that based on the company's leveraged cash flow, it is expected to consume about $13 billion during the year 2025, which is over $1 billion per month. As a result, the company's extensive fundraising efforts are barely keeping pace with its spending.