Elon Musk’s SpaceX has acquired his artificial intelligence startup, xAI, bringing the space and AI businesses under one roof.
SpaceX confirmed the deal on Monday and shared a memo explaining the plan to build a stronger, fully integrated tech company that works both on Earth and in space.
The combined company is valued at about $1.25 trillion, with xAI worth roughly $250 billion. SpaceX has invested $2 billion in xAI, and Tesla recently pledged another $2 billion.
SpaceX already runs reusable rockets, sends astronauts into orbit, and operates Starlink, the world’s largest satellite internet network serving millions of users. xAI builds AI tools, including its Grok chatbot on X, but faces strong competition from OpenAI, Google, and other rivals.
Musk said the merger will help power AI systems using satellites and solar energy from space, aiming to meet growing energy needs and expand computing beyond Earth.