Elon Musk Announces Historic Merger Between SpaceX and xAI Valued at $1.25 Trillion
Billionaire entrepreneur Elon Musk has announced the completion of a merger between his space exploration company SpaceX and artificial intelligence firm xAI, in a move widely described by observers as historic, with the combined entity valued at approximately $1.25 trillion.
The deal aligns with Musk’s long-term vision of developing ultra-powerful technologies that require massive energy resources, including the future use of space-based solar energy to support large-scale artificial intelligence systems.
In a post shared by Musk, he said the merger aims to “accelerate the progress of humanity,” without disclosing financial details or outlining a clear execution roadmap following the announcement.
According to Bloomberg, SpaceX had been preparing for an initial public offering (IPO) as early as mid-June, though it remains unclear whether the merger will affect or alter those plans.
The merger brings together two companies facing substantial challenges. While xAI is reportedly spending close to $1 billion per month in its race to develop advanced AI technologies, SpaceX relies heavily on revenues from its satellite internet service Starlink to fund operations.
The move follows xAI’s acquisition of social media platform X last year, which boosted the combined valuation at the time to around $113 billion. The inclusion of SpaceX has now propelled the new entity’s valuation into the trillion-dollar range.
Analysts view the merger as a reflection of Musk’s ambition to transcend traditional business boundaries by integrating space, artificial intelligence, and energy—reviving discussions around space-based data centers as a potential solution to Earth’s growing energy constraints.