News

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.

Published

6 months ago

June 3, 2025

Ahron Young

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.

News

Private sector jobs fall as ADP reveals major slowdown in November

ADP reports a surprising decline in November private sector jobs, raising concerns about labor market resilience and consumer sentiment.

Published

56 minutes ago

December 4, 2025

Harvey Vargas

ADP reports a surprising decline in November private sector jobs, raising concerns about labor market resilience and consumer sentiment.

ADP has revealed a surprise decline of 32,000 private sector jobs in November, signalling renewed pressure across the labour market. Small businesses in particular have been hit hardest, raising fresh concerns about resilience heading into the new year.

Economists warn that slowing hiring momentum and weakening pay growth point to a broader shift in worker demand. With consumers increasingly expecting unemployment to rise, sentiment across industries continues to cool.

The market now turns its attention to the upcoming Bureau of Labor Statistics report, which will offer a crucial read on whether this slowdown is temporary—or a sign of something much larger.

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#ADP #JobsReport #LabourMarket #EconomyNews #SmallBusiness #HiringTrends #Wages #TickerNews

News

Australia warned of major electricity price surge without faster renewable rollout

Australia may face a 13% electricity price hike next decade without faster renewable energy project implementation, warns energy watchdog.

Published

1 hour ago

December 4, 2025

Harvey Vargas

Australia may face a 13% electricity price hike next decade without faster renewable energy project implementation, warns energy watchdog.

Australia’s energy watchdog is warning that households could be hit with a 13% jump in electricity prices early next decade if renewable energy projects don’t accelerate. The Australian Energy Market Commission says the next five years will be critical to boosting clean generation and battery storage.

While a modest 5% drop in power bills is expected over the short term, delays in wind projects and transmission updates could see prices climb by as much as 20%. Energy Minister Chris Bowen also cautions that extending the life of ageing coal plants could push costs and pollution even higher.

Experts say that faster renewable construction could cut future prices by up to 10%, and that widespread electrification could transform long-term household savings.

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#ElectricityPrices
#RenewableEnergy
#AEMC
#PowerBills
#CleanEnergyTransition
#AustraliaNews
#EnergyPolicy

News

Immigration crackdown escalates tensions In New Orleans

New Orleans faces fear as immigration operation targets undocumented immigrants, sparking community concern and calls for accountability.

Published

1 hour ago

December 4, 2025

Harvey Vargas

New Orleans faces fear as immigration operation targets undocumented immigrants, sparking community concern and calls for accountability.

U.S. immigration officials have launched a new enforcement operation in New Orleans targeting undocumented immigrants, with a particular focus on individuals released from local custody under sanctuary-style policies. The move has sparked a wave of concern across the community.

Residents say the tactics used by federal agents are creating fear among families, including those without criminal records. One restaurant owner has even created makeshift sleeping spaces to keep loved ones out of sight as the operation intensifies.

Local leaders, including council member Lesli Harris, are calling for clarity and accountability as the operation continues through the end of the year. The full scope of the federal action remains uncertain.

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#Immigration #NewOrleans #USPolitics #BorderSecurity #ICE #CommunityImpact #BreakingNews #TickerNews