Elon Musk’s X and AI startup xAI are planning to fully repay roughly $17.5 billion in debt, according to Bloomberg, which cited sources familiar with the matter. Morgan Stanley has reportedly informed lenders that both companies intend to clear all outstanding obligations.
Bloomberg said xAI’s $3 billion in high-yield bonds will be redeemed at about $1.17 on the dollar, reflecting an early repayment premium. The source of the funds has not been disclosed.
Early bond redemptions typically require companies to pay penalties and compensate investors for lost interest.
The move follows major restructuring across Musk’s businesses. SpaceX acquired xAI in a deal valuing it at $250 billion ahead of a planned IPO. xAI had previously acquired X, taking on about $12 billion in debt, and later raised $20 billion in a Series E round.
Neither the companies nor Morgan Stanley commented, and Reuters could not independently verify the report.