After the conflict between Musk and Trump, Morgan Stanley seeks to find debt buyers for xAI

According to Bloomberg, Morgan Stanley is reaching out to a wider investor base to boost demand for a $5 billion debt issuance from Elon Musk's artificial intelligence startup xAi Corp. This transaction also reveals the impact of the conflict between Musk and US President Donald Trump. According to insiders, Morgan Stanley received over $3.5 billion in subscription orders when it launched this debt issuance early last week. Some investors believe that this indicates that the deal will soon be oversubscribed - a goal that has usually been easily achieved in previous Musk related financing projects. However, as of Monday this week, demand has only increased to about $5 billion, so Morgan Stanley has started contacting some small lending institutions that were not approved to participate last week.