Elon Musk’s AI company, xAI, has secured $10 billion in funding through a mix of debt and equity, as confirmed by Morgan Stanley. In a post on X, Morgan Stanley disclosed that $5 billion was raised in debt and another $5 billion came through a strategic equity transaction.

According to the firm, this hybrid funding strategy reduces capital costs and increases funding flexibility. The capital will be used to support xAI’s ongoing AI initiatives, including the Grok platform and development of one of the world’s largest data centers.

This new round comes after a $6 billion equity round in December, involving major investors such as Andreessen Horowitz, Blackrock, Fidelity, Lightspeed, MGX, Morgan Stanley, OIA, QIA, Sequoia Capital, Valor Equity Partners, Vy Capital, Nvidia, AMD, and Saudi-based Kingdom Holdings.

With this latest injection, xAI’s total capital raised is estimated at $17 billion.