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Musk Combines SpaceX and xAI in $1.25 Trillion Company, Pitching Orbital AI Compute

The deal positions Musk to sell investors on orbital compute, a vision many expect to take years.

Overview

  • Bloomberg and multiple outlets report the merged entity is valued near $1.25 trillion, with most of that tied to SpaceX.
  • SpaceX has outlined a plan to the FCC for satellites that would host AI compute, as Musk touts orbital data centers and a rapid two‑to‑three‑year cost advantage.
  • Analysts say space‑based data centers are conceivable but likely years away at meaningful scale, citing engineering, cost and servicing hurdles.
  • Coverage frames the merger as part of SpaceX’s path to go public later this year, with some calling the timing and messaging a pre‑IPO narrative lift.
  • xAI’s heavy cash needs and prior debt draw scrutiny, Tesla disclosed a roughly $2 billion investment in xAI, and Yahoo Finance reports Musk now owns about 43% of the combined company with an estimated net worth near $845 billion.