Elon Musk suddenly revealed a major move.

Recently, xAI, an AI company under the world’s richest man Elon Musk, has attracted significant attention and discussion in the Technology community. According to the latest news, xAI is in talks with potential investors, planning to raise about 10 billion USD, and this round of financing could bring xAI's Company Valuation to approximately 75 billion USD (around 544 billion RMB).

It is worth noting that this is a critical moment for xAI. Recently, Musk announced that Grok 3 will be released in one or two weeks and is currently in the final preparation stage. According to him, Grok 3 has very strong reasoning capabilities, and during testing, Grok 3's performance "exceeded any known product on the market".

In addition, Musk's social media platform X has some big news. According to U.S. media citing sources, Banks led by Morgan Stanley have further sold off their holdings of X's corporate debt, leaving only $1.3 billion in debt on the books.

Musk's major actions.

On February 15, Eastern Time, Bloomberg reported that according to informed sources, Musk's AI company xAI is in talks with potential investors to raise approximately $10 billion. This round of financing could value the company at around $75 billion.

Informed sources revealed that existing investors, including Sequoia Capital, Andreessen Horowitz, and Valor Equity Partners, are discussing participating in this financing. Since the terms of this round of financing have not yet been finalized, specific details may still change.

According to PitchBook data, during the last round of financing, xAI's valuation was around $51 billion. In December of last year, xAI announced the completion of Series C financing, raising $6 billion. Besides traditional venture capital firms,$NVIDIA (NVDA.US)$and $Advanced Micro Devices (AMD.US)$ The two major chip giants also participated in the investment in xAI.

It is reported that xAI was founded in July 2023, with team members mainly coming from OpenAI, DeepMind, and other top AI research companies. Musk established xAI to compete with OpenAI.

Just six months after its establishment, xAI released the Grok and Grok 1.5 models, followed by the release of Grok 2 in August of last year.

Musk announced on Thursday that Grok 3 would be released in a week or two, and it is currently in its final preparation stage. He also stated that Grok 3 has surpassed the performance of other currently released AI models.

Musk boldly declared at the time: “We are confident that Grok 3 will be stronger than any other AI, and it is very likely that there will never be a stronger AI than the Grok series.”

Musk bluntly stated that Grok 3 will become a true disruptor in the AI field, "Sometimes I think Grok 3 is frighteningly smart; if it finds that the data is wrong, it will reflect and delete the erroneous data."

Musk indicated that xAI is trained on synthetic data and can reflect on the mistakes made through repeated data checks, achieving logical consistency.

In other news, xAI is in talks to$Dell Technologies (DELL.US)$purchase AI servers, with the transaction amount potentially exceeding 5 billion dollars, and related negotiations have entered the advanced stages.

It is worth mentioning that an investor consortium led by Musk is offering 97.4 billion dollars to gain control of OpenAI. This acquisition is supported by xAI, and if the deal is finalized, xAI may merge with OpenAI.

However, this acquisition faced resistance from OpenAI's CEO, Sam Altman. Altman stated that OpenAI would not sell, describing it as another strategy by Musk to disrupt them.

At the same time, OpenAI is also conducting a new round of financing, with SoftBank planning to invest 40 billion dollars in the company, bringing its valuation to 300 billion dollars (approximately 2200 billion Chinese yuan).

Large-scale sell-off

Meanwhile, there is big news from Musk's social media platform X (formerly known as Twitter).

According to U.S. media citing sources, banks led by Morgan Stanley have further sold off the debts they hold in X Company, currently having only 1.3 billion dollars in debt on their books.

Looking back, Musk acquired the then Twitter Company for 44 billion dollars in October 2022 and subsequently renamed it X. In order to complete the acquisition, Musk not only sold a large amount of$Tesla (TSLA.US)$Stocks but also borrowed about 13 billion dollars from Wall Street Institutions.

Specifically, these loans include 6.5 billion dollars in secured term loans, 0.5 billion dollars in revolving credit loans, 3 billion dollars in unsecured loans, and 3 billion dollars in secured loans.

Sources say that Wall Street banks completed a secondary sale of secured loans worth 4.74 billion dollars on Thursday, which will mature in October 2029. It is reported that the fixed interest rate on these loans is 9.5%, and they were sold at 100% of face value. This sale's scale has expanded compared to the initial plan of 2.97 billion dollars.

Besides Morgan Stanley, Bank of America, Barclays, MUFG, BNP Paribas, Mizuho Bank, and Société Générale also participated in the sale.

After the completion of this Trade, the above banks have basically cleared their holdings in X Company debt, leaving only 1.3 billion USD in unsecured loans. Sources say it is still unclear when the last batch of loans will be sold.

At the beginning of February this year, these banks sold 5.5 billion USD in term loans, and they had privately sold 1 billion USD in similar loans earlier. These loans had an interest rate of 11% and were sold at 97% of face value.

Analysts state that the main reason Wall Street banks are able to heavily sell X debt is due to the expectation that X Company's revenue is likely to improve with Trump returning to the White House and Musk playing an important role in the new administration. Another factor attracting investors is that they will gain exposure to Musk's AI startup xAI through the Trade.

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