07:23 AM EDT, 06/10/2025 (MT Newswires) -- Morgan Stanley ( MS ) is reaching out to more investors in a bid to drive demand for the $5 billion debt sale for Elon Musk's artificial intelligence startup xAI, Bloomberg News reported Tuesday, citing sources familiar with the matter.

Bloomberg reported last week that Morgan Stanley ( MS ) is arranging the debt sale and sources told the newswire that the bank already had over $3.5 billion in orders.

The report said Morgan Stanley ( MS ) has started tapping smaller lenders for the sale as demand reached about $5 billion as of Monday. According to Bloomberg, banks usually shore up demand to have more flexibility on pricing and terms.

Morgan Stanley ( MS ) targets to finalize its investor list for the debt sale by June 17, Bloomberg said.

Morgan Stanley ( MS ) and xAI did not immediately respond to MT Newswires' requests for comments.

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