SpaceX, the aerospace giant founded by Elon Musk, announced on February 3, 2026, its acquisition of artificial intelligence startup xAI in a landmark $1.25 trillion deal. The merger unifies Musk’s ambitions in space exploration and advanced AI, positioning the combined entity to leverage SpaceX’s satellite infrastructure and xAI’s Grok chatbot technology.
The transaction values SpaceX at $1 trillion and xAI at $250 billion, surpassing Vodafone’s 2000 acquisition of Mannesmann as the largest merger in history. Musk described the move as “the next book in SpaceX and xAI’s mission” to advance AI-driven space exploration. Shares for the merged company are expected to price at $527 each, with plans for a potential $1.5 trillion public offering later this year.
Analysts note the deal strengthens Musk’s interconnected business ecosystem—dubbed the ‘Muskonomy’—which includes Tesla, Neuralink, and The Boring Company. However, regulatory scrutiny is anticipated over governance and national security concerns, given SpaceX’s contracts with NASA and U.S. defense agencies.
The merger underscores intensifying competition in AI development, pitting Musk against rivals like Google, Meta, and OpenAI. It also raises questions about resource allocation, as xAI’s data-center projects could benefit from SpaceX’s Starlink satellite network.
