On Monday, Elon Musk said that SpaceX has acquired his artificial intelligence startup xAI.
Announcing the deal in a blog post, Musk framed the merger as a long-term bet on humanity’s future.
He said combining SpaceX’s rockets and satellite networks with xAI’s Grok chatbot and AI models marks “not just the next chapter, but the next book” in his companies’ shared mission to expand intelligence beyond Earth.
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Taking to X, he said, “To the stars! SpaceX & xAI are now one company.”
To the stars!@SpaceX & @xAI are now one company https://t.co/2SPVVhZQsp
The transaction values SpaceX at about $1 trillion and xAI at roughly $250 billion, reported Reuters, citing people familiar with the matter.
The previous record stood for more than two decades, dating back to Vodafone’s (NASDAQ:VOD) $203 billion takeover of Germany’s Mannesmann in 2000, the report noted, citing LSEG data.
Following the deal, the combined SpaceX-xAI entity is expected to price shares at around $527, one source told the publication.
SpaceX was last valued at about $800 billion in an insider share sale, while xAI was valued near $230 billion late last year.
The merger comes as SpaceX prepares for a potential public offering later this year that could value the company at more than $1.5 trillion, the report noted, citing people familiar with the plans.
Folding xAI into SpaceX strengthens the company’s growth narrative ahead of a possible listing.
The deal further tightens Musk’s interconnected business empire — often dubbed the “Muskonomy” — which already includes Tesla Inc. (NASDAQ:TSLA), Neuralink, the Boring Company and social media platform X, which was merged into xAI last year.
According to the Bloomberg Billionaire Index, Musk currently has a net worth of $670 billion, making him the richest person on Earth.
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The transaction could draw scrutiny from regulators and investors over governance, valuation and potential conflicts of interest, the report said.
