SpaceX has agreed to buy Elon Musk’s artificial intelligence company xAI in a transaction that values the combined business at about one point two five trillion dollars, according to reports and statements circulated alongside the deal.

Under the terms described, SpaceX will pay about two hundred and fifty billion dollars to acquire xAI, while SpaceX’s own valuation is marked up to around one trillion dollars.

The merger brings together critical assets across Musk’s private empire, placing SpaceX’s launch operations and satellite networks alongside xAI’s artificial intelligence capabilities and its ownership of the X social media platform, including the Grok chatbot.

The move is intended to tighten integration between advanced computing, communications and space infrastructure at a time when demand for artificial intelligence training and deployment is driving rapid expansion of data-centre capacity.

The combined group is expected to pursue large-scale compute build-outs linked to SpaceX’s launch and orbital capabilities, reflecting Musk’s stated interest in shifting parts of the data-centre footprint beyond Earth.

The consolidation also sharpens focus on a potential public listing.

Reports described the transaction as a preparatory step toward an eventual flotation, with investors assessing a unified platform that can combine space launch, satellite connectivity, real-time information distribution and artificial intelligence development within a single corporate structure.

While financial and regulatory details are expected to be scrutinised closely, the deal underscores a strategic bet that future artificial intelligence scale will rely not only on chips and software, but also on control of power, bandwidth and physical infrastructure—areas where SpaceX’s space and satellite systems could provide a distinctive advantage.