TPG Angelo Gordon is serving as an anchor investor in a new debt package for Elon Musk’s artificial intelligence startup, xAI Corp, according to a report by Bloomberg News citing unnamed sources familiar with the matter.
The firm is participating in a loan that forms part of a broader debt offering being pre-marketed by Morgan Stanley, with proceeds expected to support general corporate purposes and infrastructure investment, including the build-out of xAI’s Memphis-based data centre, known as Colossus.
The financing package comprises a floating-rate term loan, a fixed-rate term loan, and senior secured notes. Early discussions suggest pricing around 700 basis points over the benchmark for the floating-rate tranche and a yield of approximately 12% on the notes. Investor commitments are due by 17 June.
The fundraising comes amid a strategic shift for Musk, who recently merged xAI with social media platform X (formerly Twitter) under a new entity, XAI Holdings, as he refocuses on core business ventures.
TPG and Morgan Stanley declined to comment. xAI has not responded to requests for comment.
