Elon Musk's SpaceX Avoids Billions in Debt with xAI Merger
ByAinvest
Friday, Feb 6, 2026 3:03 am ET1min read
XAI--
Elon Musk used a common two-step merger process in SpaceX's acquisition of xAI, allowing the company to avoid repaying billions of dollars in debt and giving shareholders a tax advantage. The process involved a subsidiary of SpaceX purchasing xAI, which was then merged with SpaceX, resulting in a net gain for both parties. This move is seen as a smart financial and legal strategy by Musk.
Stay ahead of the market.
Get curated U.S. market news, insights and key dates delivered to your inbox.
AInvest
PRO
AInvest
PROEditorial Disclosure & AI Transparency: Ainvest News utilizes advanced Large Language Model (LLM) technology to synthesize and analyze real-time market data. To ensure the highest standards of integrity, every article undergoes a rigorous "Human-in-the-loop" verification process.
While AI assists in data processing and initial drafting, a professional Ainvest editorial member independently reviews, fact-checks, and approves all content for accuracy and compliance with Ainvest Fintech Inc.’s editorial standards. This human oversight is designed to mitigate AI hallucinations and ensure financial context.
Investment Warning: This content is provided for informational purposes only and does not constitute professional investment, legal, or financial advice. Markets involve inherent risks. Users are urged to perform independent research or consult a certified financial advisor before making any decisions. Ainvest Fintech Inc. disclaims all liability for actions taken based on this information. Found an error?Report an Issue
Comments
No comments yet