Elon Musk's xAI has completed a $5 billion debt raise alongside a separate $5 billion strategic equity investment, Morgan Stanley said on Monday, as the startup looks to expand its AI infrastructure through data centres amid intensifying competition in the industry.

Just over six months after raising $6 billion in a Series C round of funding at a $50 billion valuation, xAI has raised $10 billion in debt and equity.

Elon Musk's xAI has raised a total of $10 billion in debt and equity, partly to fund the development of more data center capacity. Revealed in a post to X by Morgan Stanley, the funding is comprised of $5bn in secured notes and term loans, along with $5bn in "strategy equity investment."