After the conflict between Musk and Trump, Morgan Stanley seeks to find debt buyers for xAI

ChainCatcher news, according to Bloomberg, Morgan Stanley is reaching out to a broader group of investors to boost demand for a $5 billion debt issuance by Elon Musk's artificial intelligence startup xAI Corp. This deal also reveals the impact of the conflict between Musk and U.S. President Donald Trump.

According to informed sources, Morgan Stanley had secured over $3.5 billion in subscription orders when it launched the debt issuance earlier last week. Some investors believe this indicates that the deal will soon be oversubscribed— a target that has typically been easily achieved in previous financing projects related to Musk. However, as of this Monday, demand has only increased to about $5 billion, prompting Morgan Stanley to start contacting some small lending institutions that were not permitted to participate last week.