SpaceX Acquires xAI to Form $1.25T AI and Space Infrastructure Company

SpaceX has acquired xAI, consolidating Elon Musk’s space and AI ambitions into what is now the world’s most valuable private company. According to Bloomberg, the transaction values the combined business at approximately $1.25 trillion.

In a memo published by SpaceX, chief executive Elon Musk outlined a strategy centered on developing space-based data centers to support the next generation of AI systems, positioning orbital infrastructure as an alternative to energy-intensive terrestrial facilities. The merger brings together SpaceX’s launch and satellite capabilities with xAI’s large language models, including Grok, as xAI competes with OpenAI and Google. The deal follows prior multibillion-dollar cross-investments between Musk’s companies and comes as SpaceX continues preparations for a potential public offering.