X debt shopped along with $6bn sweetener from Elon Musk’s AI bet

While AI-focused securities took a beating on Monday, the sector remains highly valued and is seen as among the most promising areas in tech for years to come

The valuation of X is being boosted by a previously undisclosed stake of about $6bn (€5.7bn) in xAI Corp, Elon Musk’s AI startup. Picture: Matt Rourke/AP

Wall Street banks, finally within striking distance of offloading debt tied to X, have a sweetener on offer for potential buyers: A claim on the social-media platform’s stake in Elon Musk’s AI venture.

A group of banks led by Morgan Stanley is preparing to sell as much as $3bn (€2.9bn) of senior secured debt backing Musk’s 2022 buyout of the company. The valuation of X, formerly Twitter, is being boosted by a previously undisclosed stake of about $6bn (€5.7bn) in xAI Corp, Musk’s AI startup, according to people with knowledge of the matter.