Elon Musk merges SpaceX with xAI at $1.25tn valuation

The Guardian - World NewsEN 3 min read 100% complete by Nick Robins-EarlyFebruary 3, 2026 at 08:25 AM

AI Summary

medium article 3 min

Elon Musk's SpaceX has acquired his AI company, xAI, in a $1.25 trillion merger as SpaceX prepares for a public offering. The merger aims to create a vertically-integrated company combining AI, space-based internet, and social media. SpaceX will gain xAI properties like the Grok chatbot and X platform. A key rationale is Musk's plan for space-based datacenters to power AI, addressing the limitations of terrestrial power and cooling. The combined entity, valuing SpaceX at $1 trillion and xAI at $250 billion, is expected to go public in early summer, coinciding with a planetary alignment and Musk's birthday.

Key Entities & Roles

Key Player Opposition Context

Jupiter 30% Venus 30% United States 40% Tesla 50% X ×270% Elon Musk ×6100% xAI ×8100% SpaceX ×8100%

Keywords

spacex 100% xai 100% merger 90% artificial intelligence 90% space-based datacenters 80% elon musk 80% valuation 70% stock market float 60% data centers 60% grok chatbot 50%