Family Loan: Is interest taxable if the interest amount is gifted?

Hello Team,

Assumption:  The year is 2023 and the annual gift exclusion is $17,000. My father loans me money and the total interest in 2023 is $17,000.  My father gifts me the $17,000, therefore I do not pay it.

Question:  Is the interest of $17,000 taxable income for my father?

 

Thank you very much,

Mark