US EditionElon Musk’s SpaceX to Acquire xAI, Creating World’s Most Valuable Private Company
The $1.25 trillion combined company aims to deploy up to 1 million solar-powered orbital data centers to scale AI more cost-effectively, supporting Musk's vision for space-based computing.
- On 02/02/2026, Elon Musk, CEO of SpaceX, announced merging SpaceX with xAI to build orbital AI data centers, combining rocket capabilities with AI technology.
- Musk said the plan will harness orbital solar power to meet AI computing electricity demands while avoiding hardship on Earth and supporting Mars settlement ambitions.
- Using its reusable rockets and Starlink scale, SpaceX plans one million satellites as data centers, supported by Starship's goal of one flight per hour carrying payload.
- SpaceX is reportedly targeting a mid‑June IPO that could raise $50 billion, with Bloomberg estimating the combined valuation at $1.25 trillion and xAI valued at $230 billion.
- Neither financial terms nor a deployment timeline were disclosed, and the deal further intertwines Musk's business empire including Tesla and X amid AI funding strains.
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Mega Merger: Elon Musk Combines SpaceX and xAI into Single Company Valued at $1.25 Trillion
Elon Musk is combining SpaceX with his artificial intelligence startup xAI as the merged entity prepares for a massive IPO that could value the combined company at $1.25 trillion.
Elon Musk created the most valuable private company in the world, assessed at an impressive amount of $1.25 trillion, by combining its space company SpaceX with its startup of artificial intelligence XAI, and...
Elon Musk Surprises Everyone by Merging SpaceX With xAI. Is Tesla Next?
Quick Read SpaceX acquired xAI for $250B to create a $1.25T entity combining rockets and AI. Tesla (TSLA) merger remains possible. A Tesla merger offers shared AI and robotics resources but brings shareholder dilution and antitrust concerns. SpaceX plans orbital data centers with 100 gigawatt initial AI compute capacity scaling to one terawatt annually. Are you ahead, or behind on retirement? SmartAsset's free tool can match you with a finan…
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