Woofun AI reports that SpaceX issued $25 billion of investment-grade bonds on Tuesday, finalizing a strategic debt restructuring initiative. This move replaces high-cost obligations previously incurred to fund Elon Musk’s 2022 acquisition of X, formerly known as Twitter, alongside financing for the xAI artificial intelligence lab.

The consolidation of these entities into SpaceX significantly optimizes capital costs. Without this merger, the separate entities would have incurred approximately $1.8 billion in interest expenses on $17.5 billion in total debt this year. Under the new structure, the unified SpaceX entity faces an annual interest cost of roughly $1.5 billion, driven by the initial $25 billion bond issuance.