According to Bloomberg, Elon Musk's artificial intelligence company xAI plans to repay $3 billion in junk bonds ahead of schedule.

The company has recently merged with SpaceX and will redeem these bonds early at a premium of 117 cents per $1 bond. These bonds were only issued in June this year and were originally planned to last at least two years. Recently, the price of these bonds has risen, surging about 3 percentage points on Monday, approaching 117 cents. Early debt repayment by the company usually requires paying a premium and interest. xAI and the lead underwriter Morgan Stanley have not yet responded. Elon Musk, whose net worth is $666 billions, plans to take SpaceX public in the coming months, with the earliest possible confidential IPO filing this month and a target listing in June. The total debt of the merged company is about $18 billions, coming from xAI and the acquisition of Twitter (later renamed X and merged into xAI). Banks are formulating financing plans to alleviate the burden of high interest payments.