Focus on the BIG picture.
Tuesday, Feb 03, 2026
Outside the box.
SpaceX to Acquire xAI in Musk Consolidation Move Ahead of Potential Mega-IPO
The deal would place rockets, Starlink, the X platform and the Grok chatbot under one corporate umbrella, with reports pointing to a valuation above one trillion dollars
SpaceX has announced that it will acquire Elon Musk’s artificial intelligence company xAI, bringing the developer of the Grok chatbot and the owner-operator of the X social media platform into the rocket and satellite-internet group in a consolidation that would unite some of Musk’s most strategically significant businesses under one roof.
SpaceX described the transaction as a step toward building a single, vertically integrated organisation spanning rockets, space-based internet, direct-to-mobile communications, real-time information services and artificial intelligence.
Reports around the announcement said the combined company is being positioned for a future stock-market listing, with an expected valuation in the range of roughly one and a quarter trillion dollars to about one point three trillion dollars.
The merger follows a sharp rise in the private-market valuations of both companies.
SpaceX has recently completed secondary share transactions that valued it at about eight hundred billion dollars, while xAI was valued at roughly two hundred and thirty billion dollars in a financing round that raised around twenty billion dollars, completed in January.
The consolidation would also formalise an ecosystem that has been tightening over the past year.
Early in 2025, xAI combined with X and embedded Grok into the social platform.
More recently, Tesla said it would invest two billion dollars in xAI, underlining the degree to which Musk’s companies are increasingly intertwined around artificial intelligence development and deployment.
SpaceX, founded in 2002, has become a central supplier to the U.S. government, including launching satellites and transporting astronauts for missions linked to NASA.
It also operates Starlink, its satellite internet business, which has more than eight million active customers and has deployed roughly nine thousand satellites, making it one of the world’s largest commercial space networks.
The acquisition is expected to focus investor attention on how a combined organisation might leverage Starlink’s global connectivity, SpaceX’s launch cadence and xAI’s models and products to build large-scale computing and communications capabilities across Earth and in orbit, as Musk advances the vision of an integrated platform spanning space infrastructure, artificial intelligence and real-time digital services.
SpaceX described the transaction as a step toward building a single, vertically integrated organisation spanning rockets, space-based internet, direct-to-mobile communications, real-time information services and artificial intelligence.
Reports around the announcement said the combined company is being positioned for a future stock-market listing, with an expected valuation in the range of roughly one and a quarter trillion dollars to about one point three trillion dollars.
The merger follows a sharp rise in the private-market valuations of both companies.
SpaceX has recently completed secondary share transactions that valued it at about eight hundred billion dollars, while xAI was valued at roughly two hundred and thirty billion dollars in a financing round that raised around twenty billion dollars, completed in January.
The consolidation would also formalise an ecosystem that has been tightening over the past year.
Early in 2025, xAI combined with X and embedded Grok into the social platform.
More recently, Tesla said it would invest two billion dollars in xAI, underlining the degree to which Musk’s companies are increasingly intertwined around artificial intelligence development and deployment.
SpaceX, founded in 2002, has become a central supplier to the U.S. government, including launching satellites and transporting astronauts for missions linked to NASA.
It also operates Starlink, its satellite internet business, which has more than eight million active customers and has deployed roughly nine thousand satellites, making it one of the world’s largest commercial space networks.
The acquisition is expected to focus investor attention on how a combined organisation might leverage Starlink’s global connectivity, SpaceX’s launch cadence and xAI’s models and products to build large-scale computing and communications capabilities across Earth and in orbit, as Musk advances the vision of an integrated platform spanning space infrastructure, artificial intelligence and real-time digital services.
