{"id":6639,"date":"2025-06-09T22:15:12","date_gmt":"2025-06-10T02:15:12","guid":{"rendered":"https:\/\/hostingdiscussion.com\/news\/?p=6639"},"modified":"2025-06-09T21:58:56","modified_gmt":"2025-06-10T01:58:56","slug":"trump-musk-clash-shakes-xais-5b-pitch-as-investors-recalculate-risks","status":"publish","type":"post","link":"https:\/\/hostingdiscussion.com\/news\/trump-musk-clash-shakes-xais-5b-pitch-as-investors-recalculate-risks\/","title":{"rendered":"Trump\u2013Musk clash shakes xAI\u2019s $5B pitch as investors recalculate risks"},"content":{"rendered":"
Elon Musk\u2019s\u00a0unanticipated<\/span>\u00a0clash<\/span>\u00a0with\u00a0former<\/span>\u00a0President Donald Trump has\u00a0disintegrated<\/span>\u00a0a\u00a0critical<\/span>\u00a0fundraising\u00a0trouble<\/span>\u00a0for xAI, Musk\u2019s\u00a0artificial<\/span>\u00a0intelligence<\/span>\u00a0company<\/span>.\u00a0Just<\/span>\u00a0as xAI\u00a0directors<\/span>\u00a0pitched<\/span>\u00a0Wall Street investors on Thursday to\u00a0raise<\/span>$ 5 billion for data\u00a0center<\/span>\u00a0expansion<\/span>, Musk\u00a0intimately<\/span>\u00a0indicted<\/span>\u00a0Trump of\u00a0appearing<\/span>\u00a0in Epstein-\u00a0related<\/span>\u00a0lines<\/span>\u00a0\u2014 a\u00a0claim<\/span>\u00a0he\u00a0latterly<\/span>\u00a0deleted. Trump\u00a0fired<\/span>\u00a0back by\u00a0hanging\u00a0<\/span>to\u00a0cancel<\/span>\u00a0all\u00a0government<\/span>\u00a0contracts<\/span>\u00a0tied<\/span>\u00a0to Musk\u2019s\u00a0companies<\/span>.<\/p>\n

The fallout\u00a0came<\/span>\u00a0fleetly<\/span>.\u00a0Debt<\/span>\u00a0linked<\/span>\u00a0to X Corp, which plans to\u00a0combine<\/span>\u00a0with xAI,\u00a0dropped<\/span>\u00a0from 100 to 95 cents on the\u00a0bone\u00a0<\/span>within hours. Investors who\u00a0had<\/span>\u00a0considered<\/span>\u00a0the Trump \u2013 Musk\u00a0relationship<\/span>\u00a0a\u00a0stabilizing<\/span>\u00a0influence<\/span>\u00a0began<\/span>\u00a0reassessing their\u00a0exposure<\/span>. By Friday, the\u00a0debt<\/span>\u00a0recovered<\/span>\u00a0slightly<\/span>\u00a0to 97 cents, but\u00a0request<\/span>\u00a0jitters\u00a0remained<\/span>.<\/p>\n

Morgan Stanley,\u00a0leading<\/span>\u00a0the\u00a0debt<\/span>\u00a0trade<\/span>,\u00a0had<\/span>\u00a0hoped to\u00a0offer<\/span>\u00a0bonds<\/span>\u00a0at\u00a0face<\/span>\u00a0value<\/span>\u00a0with a 12 percent\u00a0interest<\/span>\u00a0rate<\/span>.\u00a0Now<\/span>,\u00a0interposers<\/span>\u00a0believe<\/span>\u00a0the bank may\u00a0need<\/span>\u00a0to\u00a0give<\/span>\u00a0advanced<\/span>\u00a0returns<\/span>\u00a0or\u00a0blinked\u00a0<\/span>terms<\/span>\u00a0to attract buyers. The political\u00a0rift<\/span>\u00a0raised<\/span>\u00a0questions<\/span>\u00a0not\u00a0just<\/span>\u00a0about\u00a0unborn<\/span>\u00a0civil<\/span>\u00a0support<\/span>\u00a0but\u00a0also<\/span>\u00a0about Musk\u2019s unpredictability and how that may affect\u00a0long<\/span>–\u00a0term<\/span>\u00a0strategy<\/span>.<\/p>\n

Despite the\u00a0fermentation<\/span>, xAI\u00a0still<\/span>\u00a0plans to\u00a0raise<\/span>$ 300 million in\u00a0equity<\/span>, which would\u00a0push<\/span>\u00a0the\u00a0company<\/span>\u2019s\u00a0valuation<\/span>\u00a0to$ 113 billion. One\u00a0counsel<\/span>\u00a0claimed<\/span>\u00a0investor\u00a0interest<\/span>\u00a0rose<\/span>\u00a0after the\u00a0contestation<\/span>, though others\u00a0remain<\/span>\u00a0conservative<\/span>.<\/p>\n

xAI continues to\u00a0push<\/span>\u00a0forward<\/span>\u00a0with its\u00a0structure<\/span>\u00a0pretensions<\/span>. The\u00a0company<\/span>\u00a0launched<\/span>\u00a0its Colossus supercomputer\u00a0last<\/span>\u00a0time<\/span>,\u00a0equipped<\/span>\u00a0with 100,000 GPUs. Musk aims to\u00a0double<\/span>\u00a0that to 200,000 and\u00a0ultimately<\/span>\u00a0gauge\u00a0<\/span>up to one million,\u00a0centered<\/span>\u00a0in Memphis. The\u00a0company<\/span>\u00a0has\u00a0formerly<\/span>\u00a0bought<\/span>\u00a0land<\/span>\u00a0for a\u00a0alternate<\/span>\u00a0data\u00a0center<\/span>\u00a0and is reportedly in\u00a0addresses<\/span>\u00a0with Dell for a$ 5 billion\u00a0tackle<\/span>\u00a0deal.<\/p>\n

While xAI\u00a0presses<\/span>\u00a0on, the Trump \u2013 Musk feud casts a\u00a0shadow<\/span>\u00a0over its\u00a0pitch<\/span>. Investors\u00a0now<\/span>\u00a0face<\/span>\u00a0a sharper\u00a0question<\/span>\u00a0can the technology\u00a0deliver<\/span>\u00a0presto<\/span>\u00a0enough<\/span>\u00a0to\u00a0overrun<\/span>\u00a0the\u00a0pitfalls<\/span>\u00a0tied<\/span>\u00a0to its most\u00a0visible<\/span>\u00a0figure<\/span>?<\/div>\n","protected":false},"excerpt":{"rendered":"

Elon Musk\u2019s\u00a0unanticipated\u00a0clash\u00a0with\u00a0former\u00a0President Donald Trump has\u00a0disintegrated\u00a0a\u00a0critical\u00a0fundraising\u00a0trouble\u00a0for xAI, Musk\u2019s\u00a0artificial\u00a0intelligence\u00a0company.\u00a0Just\u00a0as xAI\u00a0directors\u00a0pitched\u00a0Wall Street investors on Thursday to\u00a0raise$ 5 billion for data\u00a0center\u00a0expansion, Musk\u00a0intimately\u00a0indicted\u00a0Trump of\u00a0appearing\u00a0in Epstein-\u00a0related\u00a0lines\u00a0\u2014 a\u00a0claim\u00a0he\u00a0latterly\u00a0deleted. Trump\u00a0fired\u00a0back by\u00a0hanging\u00a0to\u00a0cancel\u00a0all\u00a0government\u00a0contracts\u00a0tied\u00a0to Musk\u2019s\u00a0companies. The fallout\u00a0came\u00a0fleetly.\u00a0Debt\u00a0linked\u00a0to X Corp, which plans to\u00a0combine\u00a0with xAI,\u00a0dropped\u00a0from 100 to 95 cents on the\u00a0bone\u00a0within hours. Investors who\u00a0had\u00a0considered\u00a0the Trump \u2013 Musk\u00a0relationship\u00a0a\u00a0stabilizing\u00a0influence\u00a0began\u00a0reassessing their\u00a0exposure. By Friday, the\u00a0debt\u00a0recovered\u00a0slightly\u00a0to 97 cents, but\u00a0request\u00a0jitters\u00a0remained. Morgan Stanley,\u00a0leading\u00a0the\u00a0debt\u00a0trade,\u00a0had\u00a0hoped to\u00a0offer\u00a0bonds\u00a0at\u00a0face\u00a0value\u00a0with a […]<\/p>\n","protected":false},"author":20624,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[71],"tags":[1833,63,3798,1855,3797],"class_list":["post-6639","post","type-post","status-publish","format-standard","hentry","category-featured","tag-ai","tag-data-center","tag-elon-musk-trump-conflict","tag-xai","tag-xai-funding-crisis"],"acf":[],"yoast_head":"\nTrump\u2013Musk clash shakes xAI\u2019s $5B pitch as investors recalculate risks - Web Hosting News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/hostingdiscussion.com\/news\/trump-musk-clash-shakes-xais-5b-pitch-as-investors-recalculate-risks\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Trump\u2013Musk clash shakes xAI\u2019s $5B pitch as investors recalculate risks - Web Hosting News\" \/>\n<meta property=\"og:description\" content=\"Elon Musk\u2019s\u00a0unanticipated\u00a0clash\u00a0with\u00a0former\u00a0President Donald Trump has\u00a0disintegrated\u00a0a\u00a0critical\u00a0fundraising\u00a0trouble\u00a0for xAI, Musk\u2019s\u00a0artificial\u00a0intelligence\u00a0company.\u00a0Just\u00a0as xAI\u00a0directors\u00a0pitched\u00a0Wall Street investors on Thursday to\u00a0raise$ 5 billion for data\u00a0center\u00a0expansion, Musk\u00a0intimately\u00a0indicted\u00a0Trump of\u00a0appearing\u00a0in Epstein-\u00a0related\u00a0lines\u00a0\u2014 a\u00a0claim\u00a0he\u00a0latterly\u00a0deleted. 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