Elon Musk's social media platform X and AI venture xAI are reportedly planning to fully repay about $17.5 billion in debt.
Debt Repayment Plan Signals Balance Sheet Overhaul
Morgan Stanley (NYSE:MS) has been informing lenders regarding both companies’ intention to repay the debt, Bloomberg reported on Monday, citing people with knowledge of the matter.
As per the report, xAI's $3 billion in high-yield bonds will be paid off at about $1.17 for every $1 borrowed. The source of the repayments is yet to be determined.
xAI did not immediately respond to Benzinga's request for comments.
Complex Web Of Deals Across Musk's Empire
xAI acquired X in 2025 and assumed its roughly $12 billion in debt. Later in the year, Morgan Stanley arranged a $5 billion debt raise for the AI startup.
Last month, Musk's space company SpaceX acquired xAI. This deal valued the AI company at $250 billion.
Meanwhile, SpaceX is reportedly preparing for an IPO in March 2026.
Photo Courtesy: Kemarrravv13 on Shutterstock.com
Photo Courtesy: gguy on Shutterstock.com
