The firm is participating in a loan that is part of a debt offering for xAI, which Morgan Stanley began pre-marketing recently, said the sources, who preferred to remain anonymous while discussing confidential information.
Representatives for TPG and Morgan Stanley chose not to comment. A representative for xAI has not responded to a request for comment.
This debt package is one of several fundraising initiatives across Musk’s firms, occurring as the billionaire shifts focus away from politics and redirects his attention to his businesses.
Musk recently integrated xAI with his social media platform X, formerly Twitter Inc., to create a combined entity called XAI Holdings. He has been heavily investing in its Memphis data center, named Colossus, which the debt raise could potentially support.
The debt package consists of a floating-rate term loan, a fixed-rate term loan, and senior secured notes, as Bloomberg previously reported.
Initial pricing discussions indicate a 7 percentage point margin above the benchmark rate for the floating-rate term loan and approximately.
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