Elon Musk's social media platform X and artificial intelligence startup xAI are planning to fully repay about $17.5 billion in debt. Morgan Stanley, managing the debt for both entities, has notified lenders of the repayment intention.
xAI's $3 billion in high-yield bonds are slated for redemption at a premium. The source of the capital for these repayments has not been disclosed. Companies typically compensate investors with penalties and expected interest when bonds are repaid ahead of schedule.
These repayment plans follow significant corporate actions. SpaceX acquired xAI in February, valuing the AI startup at $250 billion. This acquisition allows SpaceX greater flexibility in restructuring xAI's capital as SpaceX prepares for an initial public offering later this year. xAI acquired X in 2025, inheriting $12 billion of the social media company's debt. Morgan Stanley later led a $5 billion debt package for xAI, which had previously raised $20 billion in a Series E funding round.