Bank Groups Explore Financing to Reduce xAI Debt Following SpaceX-xAI Merger (X:45B)

Following the Feb 2, 2026 merger of SpaceX and xAI, Musk’s bankers are assessing a financing plan to reduce interest costs and ease the $18 billion debt load inherited from his acquisition of Twitter/X, according to sources. The deal is not finalized but is expected to support an anticipated IPO later this year. Morgan Stanley is likely to lead the financing, with Goldman Sachs, Bank of America, and JPMorgan also in contention to lead SpaceX’s IPO, though no decisions are final. Twitter/X’s debt remains a drag, serviced by a $12.5 billion package that continues to incur significant interest payments. In April 2025, the banks sold the last tranche of buyout debt at a 9.5% fixed rate for 98 cents on the dollar. The March 2025 merger added $5 billion of new debt to xAI, prompting creditors to caution against further borrowing.