Evening digest: Trump and Xi to meet, Senate gridlock, Musk's xAI hits $200B

Friday evening saw a series of significant political, economic, and international developments.

The US administration advanced a multibillion-dollar weapons package for Israel, while the Senate rejected competing stopgap funding bills, bringing the government closer to a potential shutdown.

In the private sector, Elon Musk’s artificial intelligence startup xAI reached a $200 billion valuation after a fresh funding round.

Meanwhile, President Donald Trump held a call with Chinese President Xi Jinping, paving the way for their first in-person meeting since Trump’s return to office.

US plans $6 Billion weapons sale to Israel

The US administration has moved forward with plans to sell $6 billion in weapons to Israel, according to a report by The Wall Street Journal on Friday.

The proposed package includes a $3.8 billion deal for 30 AH-64 Apache helicopters and a $1.9 billion agreement to supply 3,250 infantry fighting vehicles to the Israeli military.

Sources familiar with the matter said the arms are expected to be delivered within two to three years.

The proposals were submitted to congressional leaders for approval before Israel launched attacks on Hamas leadership in Qatar, an American ally that also hosts the largest US military presence in the Middle East.

The congressional approval process is ongoing.

US Senate rejects stopgap bills, shutdown looms

On Capitol Hill, both Republican and Democratic proposals to temporarily fund the government were blocked in the Senate on Friday, increasing the risk of a partial government shutdown beginning October 1.

The House of Representatives had passed a continuing resolution to extend funding through November 21.

However, Senate Democrats blocked the measure, citing its failure to include increased spending on healthcare programs and an extension of Affordable Care Act subsidies, which are due to expire at the end of the year.

The Democratic alternative proposed to reverse Medicaid cuts linked to the GOP’s tax relief plan and extend enhanced health insurance subsidies beyond the year-end deadline.

That plan also failed, with the measure falling short in a 44–48 vote.

The stalemate leaves Congress with little time to reach a deal before government funding expires at the start of October.

Musk’s xAI reaches $200 Billion valuation

In business news, Elon Musk’s artificial intelligence company, xAI Corp., has reached a valuation of $200 billion following its latest funding round, CNBC reported Friday.

The company raised $10 billion in the round, only weeks after Musk secured $5 billion in debt and another $5 billion in equity.

Musk has previously suggested that xAI’s potential market capitalization could exceed that of Meta Platforms Inc.

The fresh injection of funds underscores heightened investor interest in the fast-growing AI sector, which continues to attract significant capital flows.

Trump, Xi hold “productive” call ahead of APEC summit

On the international front, US President Donald Trump held a call with Chinese President Xi Jinping on Friday, describing the conversation as “productive.”

The two leaders agreed to meet in person on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit, scheduled to take place in South Korea next month.

The meeting will mark the first face-to-face encounter between Trump and Xi since Trump’s return to the White House.

In a statement on Truth Social, Trump said the call covered a range of issues, including trade, efforts to curb fentanyl trafficking, and the ongoing war between Russia and Ukraine.

He also said progress was made toward finalizing a deal over TikTok.

Trump added that he plans to visit China in early 2026, with Xi expected to travel to the United States at a later date.

“The call was a very good one,” Trump wrote, noting that both sides would continue dialogue ahead of their planned meeting at APEC.