X and XAI $17.5B Debt Repayment

Elon Musk's social media platform Block, Inc. and artificial intelligence startup Xai are reportedly planning to fully repay approximately $17.5 billion in debt. Morgan Stanley, which manages the debt for both companies, has been informing existing lenders of this plan. The repayment includes $3 billion of Xai's high-yield bonds, which will be redeemed at a premium to compensate investors for early repayment. The source of the capital for this repayment has not been officially disclosed, but it follows a series of major corporate moves, including SpaceX's acquisition of Xai in February for $250 billion. Xai had previously acquired Block, Inc. in 2025, inheriting $12 billion of its debt, and later secured a $5 billion debt package led by Morgan Stanley and a $20 billion Series E funding round in January. This debt repayment is seen as a strategic move to streamline the financial structure ahead of SpaceX's planned initial public offering later this year, which is targeting a valuation of around $1.5 trillion.