Jane Street is reportedly in discussions to refinance its $11bn debt with a select group of investors, including Pimco, in a significant private credit transaction. This move aims to shift its debt from public markets to a private vehicle, potentially allowing the secretive trading firm to increase its investments in artificial intelligence.

The deal comes as Jane Street experiences substantial trading revenues, driven by market volatility and its expansion into areas traditionally dominated by Wall Street firms. The company has also been investing heavily in AI infrastructure, such as data centers. Moving to private markets could also reduce the frequency of financial disclosures currently made to public debt holders.

While Jane Street trades its own capital, it, like rivals such as Citadel Securities, utilizes debt markets for operations. Pimco, with the backing of its parent company Allianz, is increasingly active in underwriting corporate loans. This private financing might lead to higher interest costs for Jane Street, as private market borrowing typically incurs a premium over public markets.

Jane Street reported strong first-quarter revenues of $16.1bn and a net income of $10.3bn. The firm has broadened its strategies beyond high-speed trading to include significant private investments in AI companies like Anthropic and has recently participated in financing for Core Weave and invested in Leopold Aschenbrenner's hedge fund, Situational Awareness.