Musk joins his rocket and AI businesses into a single company before an expected IPO this year

Associated Press (AP)CenterEN 3 min read 100% complete by By BERNARD CONDON and MATT O’BRIENFebruary 3, 2026 at 12:23 AM

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Elon Musk is merging his space exploration company, SpaceX, and his artificial intelligence venture, xAI, into a single entity ahead of a planned IPO later this year. SpaceX acquired xAI to combine resources, including the Grok chatbot, Starlink, and X (formerly Twitter). Musk aims to accelerate the development of space-based data centers for AI, arguing it's the only scalable and cost-effective long-term solution due to lower electricity costs in space. While Musk predicts space-based AI compute will be cheaper within 2-3 years, companies like Microsoft are skeptical, citing the practicality of terrestrial data centers. Google is also exploring space-based AI with its Project Suncatcher.

Key Entities & Roles

Key Player Opposition Context

The Boring Company 30% Neuralink 30% Brad Smith 40% Google 40% Tesla 40% Microsoft ×250% X (formerly Twitter) ×260% Starlink 60% Grok 60% xAI ×380% SpaceX ×480% Elon Musk ×790%

Keywords

elon musk 100% spacex 90% xai 80% artificial intelligence 70% space-based ai 60% data centers 60% initial public offering 50% starlink 40% grok 40%

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Very Positive

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Associated Press (AP)

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Center (0.00)

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90%

This article was automatically classified using rule-based analysis. The political bias score ranges from -1 (far left) to +1 (far right).

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elon musk spacex xai artificial intelligence space-based ai data centers initial public offering starlink grok

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