The blow-up between Elon Musk and Donald Trump could derail a $5 billion debt sale that Morgan Stanley launched earlier this week for Musk’s artificial-intelligence company, xAI. The funds are meant to help the company build out data centers.

XAI Corp., the artificial intelligence startup founded by Elon Musk, is arranging a $5 billion debt sale that will help the company to keep up its lavish spending on data center infrastructure as it strives to keep pace with rivals such as OpenAI and Google LLC.

Morgan Stanley is shopping a $5 billion debt package for Elon Musk's xAI and the artificial intelligence company is seeking a valuation of $113 billion in a share sale worth $300 million, according to media reports on Monday.