SpaceX sells $25 billion in bonds to repay Musk's X debt and fund xAI

SpaceX has successfully sold $25 billion in investment-grade bonds, a major financing move undertaken just days after its record-breaking IPO to replace costly debt linked to Elon Musk's acquisition of X (formerly Twitter) and fund the rapid cash needs of its AI company, xAI. The offering, which saw nearly $90 billion in investor orders and was upped from an initial $20 billion target, consists of five bond tranches with maturities stretching from 2031 to 2056 and interest rates ranging from 5.35% to 6.65%. The company plans to use the net proceeds primarily to repay an outstanding bridge loan facility, cover associated fees, and allocate remaining funds for general corporate activities, marking a strategic shift to lower borrowing costs and strengthen its capital position as a public entity.