What's the story Elon Musk's artificial intelligence (AI) venture, xAI, is seeking a whopping $113 billion valuation in a new stock sale. The company is also raising $5 billion in debt with the help of Morgan Stanley. The debt instruments on offer comprise a floating-rate term loan, a fixed-rate term loan, and senior secured notes. Financials High borrowing costs and debt sale commitments The early pricing discussions for the debt instruments indicate high borrowing costs, with interest rates as high as 12% on senior notes. The commitments for this debt sale are due by June 17. The money raised from this will be used for "general corporate purposes," sources told Bloomberg, and is expected to back Musk's heavy spending on AI infrastructure, such as a massive data center in Memphis, US. Strategy