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Musk raises $5 billion for xAI amid political shift

Elon Musk seeks $5 billion for xAI Corp. after shifting focus from politics to ramping up AI investments.

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Elon Musk seeks $5 billion for xAI Corp. after shifting focus from politics to ramping up AI investments.

In Short:
Elon Musk is raising $5 billion in debt for his AI startup, xAI Corp, to expand infrastructure, particularly a major data centre in Memphis. This funding move follows his exit from political involvement and comes with strong investor interest, evidenced by already surpassing $3.5 billion in demand.

Elon Musk is raising $5 billion in debt for his artificial intelligence startup, xAI Corp. This move comes after he announced his departure from political involvement.

Morgan Stanley is managing the debt sale, which features a double-digit interest rate. The funds will support Musk’s expansion of AI infrastructure, particularly a significant data centre in Memphis.

Musk’s shift away from politics follows his role as an adviser to President Donald Trump during the 2024 election, where he was a prominent backer.

Debt demand

The debt offering includes a floating-rate term loan, a fixed-rate term loan, and senior secured notes, with expected commitments by June 17. Early pricing suggests a floating-rate loan at 7 percentage points over the benchmark and around a 12% yield on the senior notes. Demand for the debt has already surpassed $3.5 billion.

Musk’s political presence received criticism, coinciding with a 20% decline in Tesla’s stock since the new administration took office. Additionally, he has raised $650 million for Neuralink and is selling $300 million in xAI stock.

Musk has merged xAI with his platform X into XAI Holdings and is significantly investing in the Memphis data centre dubbed Colossus. According to past reports, he has been in discussions to secure around $20 billion in funding, reflecting strong investor interest in artificial intelligence.

Ahron Young is an award winning journalist who has covered major news events around the world. Ahron is the Managing Editor and Founder of TICKER NEWS.

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Erika Kirk delivers emotional address at Charlie Kirk’s memorial:

Erika Kirk’s heartfelt memorial address: “He blinked and saw his Savior in paradise,” resonated with a cheering stadium.

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Erika Kirk’s heartfelt memorial address: “He blinked and saw his Savior in paradise,” resonated with a cheering stadium.


Erika Kirk delivers emotional address at her late husband Charlie Kirk’s memorial:

“He blinked and saw his Savior in paradise.”

She started praying as everyone in the stadium cheered her.


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UN struggles with Israel-Palestine conflict and climate action

UN faces mounting pressure over Gaza and climate change as global leaders convene for General Assembly amid ongoing crises

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UN faces mounting pressure over Gaza and climate change as global leaders convene for General Assembly amid ongoing crises

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In Short:
– The UN struggles with violence in Gaza and doubts about its role in global conflicts.
– International pressure on Israel increases, with smaller nations relying on the UN to express their concerns.
The United Nations faces significant challenges as it grapples with escalating violence in Gaza and broader global issues.
Delegates are gathering this week in New York for the UN General Assembly, where the UN’s inability to resolve the Israel-Palestine conflict looms large.Historically, the UN aimed to establish peace between Jewish and Arab states in Palestine.

However, its power to address current tensions has diminished, especially with Israel’s continued incursions into Palestinian territories. Israeli officials, including the ambassador to the UN, have vocalised frustrations towards the organisation.

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The UN’s challenges extend to its roles in humanitarian aid and climate initiatives, facing budget constraints and diminished expectations.

Global leaders are questioning the UN’s relevance, particularly regarding pressing issues like the Ukraine conflict.

International Response

Increased international scrutiny of Israel parallels historical situations, leading to calls for intensified diplomatic efforts.

The EU has proposed new measures affecting Israeli imports. Amidst this, smaller nations view the UN as a vital platform to voice concerns that might otherwise go unheard.


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Trump proposes $100,000 H-1B visa fee increase

Trump announces massive H-1B visa fee increases and introduces $1 million ‘gold card’ to reshape immigration system

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Trump announces massive H-1B visa fee increases and introduces $1 million ‘gold card’ to reshape immigration system

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In Short:
– Trump announced a $100,000 fee for H-1B visas and a $1 million residency gold card to boost American hiring.
– Critics argue increased fees may limit smaller firms’ access to foreign talent, impacting U.S. tech innovation.
President Trump announced significant changes to the U.S. immigration system, introducing a new $100,000 fee for H-1B visas and a $1 million “gold card” for residency.
The move aims to increase revenue and promote the hiring of American workers, claiming that many tech companies exploit the current system.The fee increase targets H-1B visa applications, which traditionally have low entry costs.

Trump stated the initiative aims to bring in highly skilled individuals rather than those crossing the borders illegally. A gold card requiring a $1 million payment will expedite visa processing, with a reduced availability compared to existing green card categories.

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The new programme could alter the competitive landscape for U.S. tech companies, which historically depend on H-1B visas to access foreign talent.

Critics warn that the increased fees may deter smaller firms from utilising these visas, potentially hindering U.S. progress in tech sectors like artificial intelligence.

Visa Impact

Debate persists within Trump’s administration regarding the new policy’s implications. Supporters argue it protects American jobs, while opponents contend it restricts access to global talent crucial for innovation.

The H-1B visa programme, established in 1990, remains vital for skilled foreign workers seeking residency in the U.S., yet faces growing scrutiny.


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