SpaceX has announced the acquisition of artificial intelligence firm xAI, combining both entities under a single corporate structure. The deal strengthens SpaceX’s standing as the world’s most highly valued private enterprise, reflecting a growing push among technology leaders to consolidate resources for AI development.
The merger brings together two of Elon Musk’s leading ventures, forming a consolidated company valued at approximately $1 trillion based on recent valuations—SpaceX at $800 billion following a late 2025 share sale, and xAI at $230 billion as of a January funding round. This move highlights the escalating demand for capital and computing power in the AI industry, with major players like Musk revising their strategies to address rapid technological shifts.
In statements released on SpaceX’s website, Musk indicated that integrating xAI with SpaceX marks a significant evolution in both companies’ missions. He pointed to the challenges posed by AI’s growing needs, emphasizing that maintaining current advancements depends on extensive terrestrial data centers that require significant energy and cooling infrastructure. Musk suggested that relocating these high-resource operations to space could offer a more cost-effective and scalable solution in the near future.
According to Musk, generating AI compute in orbit could become the most economical option within the next two to three years. The merged company’s approach signals an expanded commitment to leveraging both capital and technological assets for future developments in artificial intelligence and space exploration.
No further details have been provided regarding implementation timelines or next steps following the merger.
