Artificial Intelligence Pioneer, X.AI Corp, Hits a New Milestone with a Stellar $5 Billion Three-Part Financing

Our era’s technological vanguard, X.AI Corp., is on the cusp of a financial game changer. The artificial intelligence maestro is ready to take the plunge into a stunning $5 billion three-part financing operation. This audacious financial plan comprises $1 billion for each of the five-year floating- and fixed-rate term loans, topped off with a $3 billion five-year senior loan.

With the curtains all set to draw close on this outstanding financing program on June 20 at precisely 1 p.m. EDT, the anticipation in financial and technology circles is feverish. In an interesting twist, the price talk for the term loan B tranche has been revised wider to S+725 and an OID of 96, a departure from the earlier S+700 and 97, respectively. Furthermore, the fixed-rate term’s loan and the senior secured notes now stand at a whopping 12.5% par, a notable uptick from the previously mooted 12% ballpark.

Based in Palo Alto, California, X.AI Corp. stands tall as an AI developer committed to accelerating human scientific discovery. Elon Musk, a longtime cheerleader for the transformational potential of AI, founded the company in 2023. Among its flagship products is ‘Grok,’ a sophisticated conversational AI tool that significantly underscores the company’s innovation profile. In a strategic move to expand its digital footprint, X.AI Corp. acquired the social media platform once known as Twitter in an all-stock transaction in March. This crucial acquisition valued at an astronomical $33 billion, emphasizes the company’s ambitious growth trajectory in the AI industry.