Key Points:
- SpaceX acquired xAI in a record-breaking merger valued at $1.25 trillion.
- The deal values SpaceX at $1 trillion and xAI at $250 billion.
- Musk aims to build “orbital data centers” using the combined technology.
- The merger integrates AI, rockets, and satellite internet under one roof.
Elon Musk has officially merged his two most ambitious ventures, creating a tech giant valued at a staggering $1.25 trillion. On Monday, Musk confirmed that SpaceX has acquired his artificial intelligence startup, xAI, in what is now the largest corporate merger in history.
The deal values the rocket and satellite company SpaceX at roughly $1 trillion, while xAI is valued at $250 billion. According to documents regarding the deal, this is an all-stock transaction. Shareholders of xAI will see their holdings converted into SpaceX stock at a ratio of about 0.1433 shares for every xAI share they own.
Musk explained the reasoning behind this massive consolidation in a blog post. He described the new entity as a “vertically-integrated innovation engine” that spans both Earth and space. The combined company brings together advanced AI, reusable rockets, the Starlink satellite internet network, and data from the X social media platform.
The primary goal, according to Musk, is to build “orbital data centers.” By moving heavy computing tasks into space, the company could theoretically bypass the limitations of power grids on Earth, using solar energy and Starlink connections to run advanced AI models.
This merger comes at a critical time, just ahead of a highly anticipated initial public offering (IPO) for SpaceX planned for later this year. By folding xAI into SpaceX, Musk presents investors with a unified front that dominates multiple future-facing industries.
Banking documents viewed as part of the deal suggest SpaceX’s value could reach as high as $1.26 trillion on its own, showing the immense confidence financial institutions have in Musk’s manufacturing and engineering capabilities.
