Elon Musk’s social network X and artificial intelligence startup xAI are set to repay approximately US$17.5 billion (A$24.6 billion) in debt, according to sources familiar with the matter. Morgan Stanley, which managed the debt raises for both companies, has reportedly informed existing lenders that X and xAI will fully repay their outstanding debts. The sources, who requested anonymity, have not disclosed the origin of the repayment capital.
X, previously known as Twitter, incurred around US$12.5 billion in debt during Musk’s acquisition. Meanwhile, xAI borrowed US$5 billion through bonds and loans in June. Last year, the companies merged under xAI Holdings. X, the social media platform, aims to provide a global space for free expression and conversations. XAI, is focused on developing artificial intelligence technologies.
The planned repayment coincides with Musk’s broader strategy to consolidate and potentially take his businesses public. Recently, SpaceX acquired xAI last month, transforming it into a subsidiary focused on building data centres in space. The valuation of the combined business is reportedly around US$1.25 trillion.
A Morgan Stanley representative declined to comment on the matter. Representatives for X and xAI did not immediately respond to requests for comment.