US EditionElon Musk’s SpaceX to Acquire xAI, Creating World’s Most Valuable Private Company
The merger unites SpaceX’s satellite network and xAI’s AI capabilities to build solar-powered orbital data centers, targeting a $1.25 trillion IPO to scale AI compute in space.
- 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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260 Articles
Musk intends to launch through SpaceX a million satellites using its Starship rocket that according to the company will soon reach a launch speed of one flight per hour with a payload of 200 tons
Good morning! Earlier today we wrote about Musk's billion-dollar merger: xAI is being acquired by SpaceX. On paper, it's one of the largest acquisitions in the…
Musk Merges 2 of His Companies
Elon Musk is rolling two of his biggest bets into one $1.25 trillion moonshot. Musk said Monday he's folding rocket company SpaceX and artificial intelligence startup xAI into a single operation he calls "the most ambitious, vertically-integrated innovation engine on (and off) Earth," tying together rockets, satellite internet, AI,...
Elon Musk, who also owns Tesla, justifies this preliminary merger as a step towards completing SpaceX's "next chapter": building in orbit giant photovoltaic power plants, more efficient than on Earth, combined with data centres from the AIA.
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