IT Home, March 3 – According to a report by Bloomberg News on Monday, citing sources familiar with the matter, Elon Musk's social media platform X and his artificial intelligence startup xAI are planning to fully repay approximately $17.5 billion in debt associated with the two companies.
According to the report, Morgan Stanley, which manages this debt for the two companies, has informed existing creditors about the full repayment plan from X and xAI.
The report notes that the $3 billion in high-yield bonds issued by xAI will be redeemed at a price of approximately $1.17 per $1 face value. This premium reflects that the debt was originally expected to remain outstanding for at least another two years.
The report also stated that the companies did not disclose the source of funds for the repayment.
When companies repay bonds early, they typically need to pay investors a call premium, plus the interest creditors would have received during the original term. Bloomberg indicated that some of the debt has been outstanding for several years, while some was issued less than a year ago, and it also includes call provisions.
This debt repayment plan comes after a series of significant corporate maneuvers by the two companies: In February of this year, SpaceX acquired xAI, valuing the AI startup at $250 billion, providing the aerospace company with greater flexibility to restructure xAI's capital structure. The rocket manufacturer is preparing for an Initial Public Offering (IPO) later this year, and Musk carried out a management reshuffle at xAI last month.
xAI acquired X in 2025, simultaneously taking on $12 billion in debt from the social media company.
According to Reuters, citing informed sources, Morgan Stanley subsequently led a $5 billion debt financing package for xAI. In January of this year, xAI completed a Series E funding round, raising $20 billion.