00:00It's Benzinga bringing Wall Street to Main Street.
00:02Elon Musk's social network X and artificial intelligence startup XAI planned to repay
00:07about $17.5 billion in debt in full, according to people familiar with the matter, according to
00:13Bloomberg. Morgan Stanley has told lenders that the companies will repay the outstanding balances.
00:19The source of capital was not disclosed. X took on about $12.5 billion in debt during
00:24Musk's purchase, and XAI borrowed $5 billion in June. XAI raised $20 billion in equity in
00:31January. The companies merged under XAI Holdings last year. SpaceX has not used the debt markets
00:37for years. X has been paying tens of millions monthly to service debt, and XAI is burning
00:43about $1 billion in cash each month. XAI faces acute cash needs as it spends billions on data
00:49centers, chips, and talent. It has worked with Valor Equity Partners, Apollo Global Management,
00:55and other lenders to raise up to $20 billion through special purpose vehicles that buy
01:00NVIDIA chips and lease them to XAI. For all things money, visit Benzinga.com.
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