Musk combines SpaceX with xAI to form 'most ambitious' engine on (and off) Earth
03 Feb 2026, 10:47 AMThe space tech company is also heading for its initial public offering (IPO) later this year.
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Elon Musk's rocket-and-satellite company SpaceX has acquired the multi-billionaire's artificial intelligence (AI) company xAI.
In a memo posted on the SpaceX website, Musk said that SpaceX has acquired xAI to form the most ambitious, vertically-integrated innovation engine on (and off) Earth.
"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!," he added.
Financial details of the deal were not disclosed but media reports said that the transaction values SpaceX at $1 trillion, and xAI at $250 billion.
Notably, last Friday SpaceX had filed a request with the Federal Communications Commission (FCC) seeking approval to launch a constellation of one million solar-powered satellites into space to serve as data centers for artificial intelligence technology.
"Current advances in AI are dependent on large terrestrial data centers, which require immense amounts of power and cooling. Global electricity demand for AI simply cannot be met with terrestrial solutions, even in the near term, without imposing hardship on communities and the environment," explained Musk in the memo.
The space tech company is also heading for its initial public offering (IPO) later this year.
The deal is expected to not only boost Musk's space but his AI ambitions as well as competition heats up from rivals OpenAI, Google's Gemini and Anthropic.
This is not the first time Musk has combined his entities. Earlier in March 2025, xAI acquired X, the Musk-owned social platform formerly known as Twitter, in a $33 billion all- stock deal.
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