March 2 (Reuters) – Elon Musk’s social media platform
Morgan Stanley, which manages the debt of both companies, has notified existing lenders that X and xAI plan to repay everything they are owed, the report said.
Bloomberg reports that $3 billion of xAI’s high-yield bonds will be redeemed at about $1.17 to the dollar, a premium that reflects the debt is expected to remain outstanding for at least two years.
The companies have not disclosed the source of the funding, according to Bloomberg.
When companies pay off a bond early, they typically must pay a penalty to investors, plus the amount of money the lender expected to earn over the original term.
Some of the debt is years in arrears, but some are less than a year old and subject to penalties, Bloomberg said.
The repayment plan follows a series of major moves by the company.
SpaceX acquired xAI in February in a deal that valued the artificial intelligence startup at $250 billion, giving the aerospace company greater flexibility in restructuring xAI’s capital.
The rocket maker is preparing for an initial public offering later this year, after Musk overhauled xAI’s management last month.
xAI acquired X in 2025, inheriting the social media company’s $12 billion in debt in the process.
Morgan Stanley subsequently led a $5 billion debt package for xAI, people familiar with the matter told Reuters. In January this year, xAI raised $20 billion in Series E funding.
X and xAI did not respond to requests for comment. Morgan Stanley declined to comment. Reuters could not independently verify the Bloomberg report.
(Reporting by Anhata Rooprai in Bengaluru; Editing by Alan Barona and Tasim Zahid)
