While the online feud between Elon Musk and President Donald Trump seemed to drive traffic to Musk’s social media platform X (formerly Twitter), it could also create issues for the platform’s parent company xAI.

Potential investors were following the feud on social media while Morgan Stanley bankers and executives from the artificial-intelligence firm were pitching them on the deal.

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.