SpaceX has acquired xAI in a $1.25 trillion merger, uniting AI and space tech to pursue orbit-based data centers and a massive 2026 IPO.
Elon Musk has executed one of the largest private tech consolidations in recent history, with SpaceX acquiring his artificial intelligence venture xAI in a deal valuing the combined entity at roughly $1.25 trillion, according to industry sources and company disclosures.
The acquisition, announced on February 2, 2026, brings together Musk’s space and satellite operations with his fast-growing AI platform, which includes the Grok chatbot and the social media network X. In a memo published on SpaceX’s website, Elon Musk described the move as a step toward building a vertically integrated innovation engine that spans rockets, AI systems, space-based internet, direct-to-mobile connectivity, and real-time information platforms.
The timing is significant. The merger comes ahead of a potential SpaceX initial public offering that could take place as early as June 2026 and rank among the largest IPOs ever.
