Source: Musk's xAI company is expected to complete $5 billion in debt financing

PANews reported on June 18 that according to Jinshi, Musk's xAI company is expected to complete a $5 billion debt financing, which has limited investor demand and a coverage ratio of 1.5 times. The funds will be allocated on Wednesday. Musk's xAI costs are growing, with a monthly expenditure of $1 billion. The company is trying to raise $9.3 billion.

Musk’s artificial intelligence startup xAI is trying to raise $9.3 billion in debt and equity, but before the money is in the bank, it plans to spend more than half of it in the next three months, according to terms of the deal shared with investors. The speed at which the company is raising money and burning through cash is a stark illustration of the unprecedented funding needs of the AI industry and the relatively meager revenue it has brought in so far, at least in the case of xAI. Looking at the company’s leveraged cash flow, the company expects to burn about $13 billion through 2025, or more than $1 billion a month, according to sources. As a result, the company’s massive fundraising activity has barely kept up with its spending.