Bank was close to lining up $5bn for artificial intelligence group when US president and billionaire attacked each other

Even before Elon Musk and President Donald Trump’s public falling out, selling debt for the tech mogul’s companies has always been tricky for Morgan Stanley. But xAI Corp. was supposed to be different.

Elon Musk's AI startup xAI expects to earn over $13 billion annually by 2029, according to projections shared by its banker, Morgan Stanley, Bloomberg reported. Morgan Stanley is offering access to xAI’s financials to investors willing to commit at least $50 million as it seeks to raise $5 billion through a debt sale.