By fusing SpaceX and xAI—which acquired X last year—Elon Musk tightens his grip over technologies that shape national security, social media, and artificial intelligence.
“In the long term, space-based AI is obviously the only way to scale,” Musk wrote. “The only logical solution therefore is to transport these resource-intensive efforts to a location with vast power and space.
I mean, space is called ‘space’ for a reason.” The deal, which pulls together two of Musk’s largest private ventures, values the combined entity at $1.25 trillion, making it the most valuable private company in the world, according to a report from Bloomberg. SpaceX was in the process of preparing to go public later this year before the xAI acquisition was announced. The space firm’s plans for an initial public offering are still on, according to Bloomberg. In December, SpaceX told employees that it would buy insider shares in a deal that would value the rocket company at $800 billion, according to The New York Times. Last month, xAI announced that it had raised $20 billion from investors, bringing the company’s valuation to roughly $230 billion. This isn’t the first time Musk has sought to consolidate parts of his vast business empire, which is largely privately owned and includes xAI, SpaceX, the brain interface company Neuralink, and the tunnel transportation firm the Boring Company. Last year, xAI acquired Musk’s social media platform, X, formerly known as Twitter, in a deal that valued the combined entity at more than $110 billion. Since then, xAI’s core product, Grok, has become further integrated into the social media platform. Grok is featured prominently in various X features, and Musk has claimed the app's content-recommendation algorithm is powered by xAI’s technology. A decade ago, Musk also used shares of his electric car company Tesla to purchase SolarCity, a renewable energy firm that was run at the time by cousin Lyndon Rive. The xAI acquisition demonstrates how Musk can use his expansive network of companies to help power his own often grandiose visions of the future. Elon Musk said in the blog post that SpaceX will immediately focus on launching satellites into space to power AI development on Earth, but eventually, the space-based data centers he envisions building could power civilizations on other planets, such as Mars. “This marks not just the next chapter, but the next book in SpaceX and xAI's mission: scaling to make a sentient sun to understand the Universe and extend the light of consciousness to the stars,” Musk said in the blog post.
Elon Musk Spacex Acquisitions Space Tesla
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Elon Musk mulls merging SpaceX with artificial intelligence firm xAI: reportToday's Business Headlines 01/29/26
Read more »
Elon Musk is said in advanced talks to combine SpaceX, xAIElon Musk is in advanced talks to combine SpaceX with xAI, according to people familiar with the matter, underscoring how the billionaire’s vision for an artificial intelligence-powered world…
Read more »
Elon Musk merges SpaceX with xAI (and X)SpaceX has acquired xAI, which also owns X. Elon Musk leads both companies.
Read more »
Will Elon Musk’s emails with Jeffrey Epstein derail his very important year?Or is controversy simply baked into the price of doing business with Musk?
Read more »
Elon Musk's SpaceX acquires xAISteve Kopack is a senior reporter at NBC News covering business and the economy.
Read more »
Elon Musk's SpaceX has acquired his AI company, xAIFind the latest technology news and expert tech product reviews. Learn about the latest gadgets and consumer tech products for entertainment, gaming, lifestyle and more.
Read more »