"Elon Musk's bankers are looking to trim the debt that xAI has taken on over the past few years, following the company's merger with SpaceX, a new report from Bloomberg says. xAI has built up $18 billion in debt over the past few years, with some of this being attributed to the purchase of social media platform Twitter (now X) and the creation of the AI development company. Bankers are trying to create some kind of financing plan that would trim "some of the heavy interest costs" that come with the debt. The financing deal would help trim some of the financial burden that is currently present ahead of the plan to take SpaceX public sometime this year."
"The report indicates that Morgan Stanley is expected to take the leading role in any financing plan, citing people familiar with the matter. Morgan Stanley, along with Goldman Sachs, Bank of America, and JPMorgan Chase & Co., are all expected to be in the lineup of banks leading SpaceX's potential IPO. Since Musk acquired X, he has also had what Bloomberg says is a "mixed track record with debt markets." Since purchasing X a few years ago with a $12.5 billion financing package, X pays "tens of millions in interest payments every month.""
xAI has accumulated roughly $18 billion in debt, partly linked to the purchase of Twitter (now X) and the creation of the AI company. Bankers are pursuing a financing plan intended to reduce heavy interest costs associated with that debt. Morgan Stanley is expected to lead the financing effort, with Goldman Sachs, Bank of America, and JPMorgan Chase & Co. also involved. The refinancing effort aims to ease financial burdens ahead of a planned SpaceX IPO. X merged with xAI last March, producing a $45 billion valuation that includes the outstanding debt. X currently pays tens of millions in monthly interest.
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