The fallout came fleetly. Debt linked to X Corp, which plans to combine with xAI, dropped from 100 to 95 cents on the bone within hours. Investors who had considered the Trump – Musk relationship a stabilizing influence began reassessing their exposure. By Friday, the debt recovered slightly to 97 cents, but request jitters remained.
Morgan Stanley, leading the debt trade, had hoped to offer bonds at face value with a 12 percent interest rate. Now, interposers believe the bank may need to give advanced returns or blinked terms to attract buyers. The political rift raised questions not just about unborn civil support but also about Musk’s unpredictability and how that may affect long– term strategy.
Despite the fermentation, xAI still plans to raise$ 300 million in equity, which would push the company’s valuation to$ 113 billion. One counsel claimed investor interest rose after the contestation, though others remain conservative.
xAI continues to push forward with its structure pretensions. The company launched its Colossus supercomputer last time, equipped with 100,000 GPUs. Musk aims to double that to 200,000 and ultimately gauge up to one million, centered in Memphis. The company has formerly bought land for a alternate data center and is reportedly in addresses with Dell for a$ 5 billion tackle deal.
While xAI presses on, the Trump – Musk feud casts a shadow over its pitch. Investors now face a sharper question can the technology deliver presto enough to overrun the pitfalls tied to its most visible figure?
