"X, formerly known as Twitter, assumed roughly $12.5 billion in debt during Musk's acquisition of the company. xAI separately borrowed about $5 billion through bonds and loans last June. The two firms merged last year under xAI Holdings."
"X has been servicing tens of millions of dollars in monthly debt payments, while xAI has reportedly been burning approximately $1 billion in cash per month as it invests heavily in data centers, chips, and AI talent. That being said, xAI also concluded a funding round in January, where it raised $20 billion of new equity."
"Bloomberg noted that portions of the debt are relatively recent and may carry early repayment penalties. xAI's $3 billion in high-yield bonds are expected to be redeemed at 117 cents on the dollar, reflecting a premium since the debt was expected to stay outstanding for at least two years."
X and xAI are preparing to repay their combined $17.5 billion debt, according to Bloomberg News sources. X accumulated roughly $12.5 billion during Elon Musk's acquisition of Twitter, while xAI borrowed approximately $5 billion through bonds and loans. Morgan Stanley, which arranged the financing, has notified lenders of the repayment plans, though the capital source remains undisclosed. Some debt portions carry early repayment penalties, with xAI's $3 billion in high-yield bonds expected to be redeemed at 117 cents on the dollar. X services tens of millions monthly in debt payments, while xAI burns approximately $1 billion monthly on infrastructure investments. xAI recently raised $20 billion in January funding.
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