Musk’s X and xAI move to repay $17.5B debt in full: Bloomberg report

Elon Musk's social media platform X and ​artificial intelligence startup xAI plan to repay in full about $17.5 ‌billion in debt tied to the companies, Bloomberg News reported on Monday, citing people familiar with the matter.

Morgan Stanley, which is managing the debt for both companies, has ​been informing existing lenders that X and xAI plan to pay ​back everything they owe, the report said.

Bloomberg reported that xAI's $3 billion ⁠of high-yield bonds are set to be redeemed at about $1.17 on ​the dollar, a premium reflecting that the debt was expected to remain outstanding ​for at least two years.

The companies have not revealed where the capital is coming from, according to the Bloomberg report.

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When companies repay bonds ahead of schedule they typically must ​compensate investors with a penalty plus the interest lenders had expected to ​earn over the original term.

Some of the debt has been outstanding for years, though ‌portions ⁠are less than a year old and carry penalties, Bloomberg said.

The repayment plans come after a series of major corporate moves.

SpaceX acquired xAI in February in a deal that valued the AI startup at $250 billion, giving the aerospace ​company greater flexibility ​to restructure xAI's ⁠capital.

The rocket maker is preparing an initial public offering later this year, ahead of which Musk overhauled xAI's management last month.

xAI ​acquired X in 2025, inheriting $12 billion of the social media ​company's debt ⁠in the process.

Morgan Stanley subsequently led a $5 billion debt package for xAI, sources familiar with the matter told Reuters. In January, xAI raised $20 billion in a Series ⁠E ​funding round.

X and xAI did not respond ​to requests for comment. Morgan Stanley declined to comment.

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