Elon Musk merges SpaceX and xAI, gaining big profits: saves nearly $1 billion in interest annually
According to a report by Bloomberg today, Elon Musk's merger of SpaceX, xAI, and X into a group enterprise has yielded considerable unexpected gains: saving nearly $1 billion (approximately RMB 6.811 billion at current exchange rates) in interest payments annually.

Regulatory filings submitted prior to SpaceX's historic IPO reveal that the company secured a $20 billion (approximately RMB 136.219 billion at current exchange rates) bridge loan from a bank, which served as the funding source for X and the artificial intelligence company xAI to repay $17.5 billion (approximately RMB 119.192 billion at current exchange rates) in high-interest junk debt.
In other words, Musk used low-interest financing from high-quality assets (SpaceX) to refinance or repay high-interest assets (X and xAI).
The documents show that as of March 31, 2026, the effective interest rate for this bridge loan is 4.58%, significantly lower than the 12.5% rate on junk bonds and leveraged loans borne by X and xAI. According to calculations by Bloomberg, this operation has cut the total annual interest cost for Musk's companies roughly in half, reducing it to about $900 million.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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