After Musk stepped down from DOGE, his companies welcomed the financing wave: xAI shares and bonds were issued, and Neuralink also raised funds

Written by: Ho Hao, Wall Street saw that

after Musk returned to his business empire and moved away from politics, his companies quickly launched a series of financings, including xAI's launch of a $300 million share sale plan and a $5 billion debt sale. In addition, brain-computer interface company Neuralink raised $650 million in a Series E funding round.

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Monday, Musk's xAI is launching a $300 million share sale plan that will allow employees to sell shares to new investors, according to media reports. In this transaction, the company was valued at $113 billion. This is in line with the price of Musk's xAI when it acquired his social media platform X in March of this year.

Musk merged xAI with its social platform X this year into a new company called XAI Holdings. The March acquisition put the entire group at $113 billion, with xAI valued at $80 billion and X at $33 billion. Musk acquired X (then Twitter) for $44 billion in October 2022.

Industry insiders pointed out that this secondary share sale, known as a "tender offer", is expected to be followed by a larger financing round, when the company will issue new shares to external investors.

This follows media reports in April that XAI is in talks with investors to raise about $20 billion in funding for its newly merged AI startup and social media business, highlighting the market's enthusiasm for AI and Musk's influence.

In addition, Musk has launched a $5 billion debt sale for xAI. According to media reports, Morgan Stanley is seeking debt financing for xAI, which could help Musk continue to invest heavily in AI infrastructure, especially in Memphis to build a large data center, Colossus.

The debt financing package includes Class B term loans, fixed-rate term loans and senior secured notes, according to media sources familiar with the matter. The funds will be used for general corporate purposes, with a letter of commitment due on June 17.

xAI declined to comment on the above news.

Regarding the merger of xAI and X into one company, Musk previously said that this complex will allow his two companies to achieve synergies by integrating models, computing power, distribution channels, and talent. For example, AI developers can better leverage data from social media platforms to train their models and reach out to their user base.

Musk did not further disclose the specific structure of the xAI merger deal with X in March. According to analysts, the opaque deal allows X to capitalize on xAI's rising valuations to gain support.

Musk founded xAI in 2023 to challenge Sam Altman's OpenAI, as well as other big tech companies. xAI, an AI startup, was valued at $45 billion in a $500 million private funding round late last year. Musk also granted a 25% stake in xAI last year to investors who supported his acquisition of Twitter.

xAI soon launched the Grok chatbot and built the Colossus supercomputer cluster, one of the largest AI data center projects in the United States. In addition to competing with big tech companies and Grog's sometimes "rugged" image, Musk has also signed a number of cooperation agreements. Last month, Microsoft announced that it was making xAI models available to its cloud computing customers, while messaging app Telegram also agreed to distribute Grok to its 1 billion users.

Musk previously revealed on May 20 that his Memphis data center has deployed 200,000 GPUs for training AI systems, and he plans to add another million GPUs to another nearby location.

Neuralink raises $650 million

, according to media reports, that Musk has also raised $650 million for his brain-computer interface company, Neuralink, at a valuation of $9 billion, which excludes the new investment.

Neuralink's last funding round, which was valued at $3.5 billion, was in a funding round in 2023.

Musk's return to the business empire from DOGE

previously spent several months as Trump's senior adviser and frequent accompaniment to events, as well as providing strong support for Trump's 2024 presidential election and being one of his main patrons. Musk's tenure at the U.S. government's Department of Efficiency (DOGE) ended last week, during which he unveiled a massive government spending cut program that sparked widespread criticism not only of his personalty, but also of concerns about his company's performance.

The spate comes after Musk stepped down from his role in the Trump administration responsible for cutting administrative spending. Some analysts pointed out that Musk seems to be eager to return his focus to his various businesses. Shares of Tesla Inc., where Musk is CEO, have fallen 20% since Trump's inauguration.

Musk has previously said he will refocus on his business territory after his company was affected by its ties to President Trump. Musk wrote on X at the end of last month:

back to 24-hour work mode, overnight in conference room / server room / factory. I have to focus all my strength on X/xAI and Tesla. Because we're in the key technology release phase.