Elon Musk's artificial intelligence company, xAI, is seeking to raise $5 billion through debt financing arranged by Morgan Stanley. The financing options include loans and bonds as the company navigates political tensions and concerns related to Musk's 2022 Twitter acquisition. Separately, xAI has secured approximately $250 million in equity investments from around two dozen venture capital firms and other investors, including Fidelity, TPG, and Sequoia. Fidelity alone is purchasing $20 million worth of shares in a tender offer that values xAI at roughly $113 billion. Discussions among investors have also considered a potential $20 billion funding round at a valuation of up to $120 billion. This investment activity reflects strong investor interest in the AI sector amid broader industry growth and aligns with increased emphasis on AI innovation in Europe.