Elon Musk is leveraging the power of bonds to fuel his ambitious artificial intelligence endeavors. His startup, xAI Corp., has issued $5 billion in debt through a venture with Morgan Stanley, attracting significant investor interest with double-digit interest rates. The funding will primarily support Musk’s continued investment in AI infrastructure, particularly as he plans to establish a substantial data center in Memphis. Discussions indicate an initial pricing structure featuring a floating-rate term loan with an 7 percentage point above the benchmark rate, while senior bonds yield approximately 12%. This bond sale reportedly garnered over $3.5 billion in demand. Additionally, Musk has secured $650 million for his neurotechnology company, Neuralink Corp., and sold $300 million worth of xAI stock through a secondary offering.