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Musk Merges SpaceX and xAI in $1.25 Trillion Push for Orbital Data Centers

The merged firm is pitching solar-powered orbital data centers to meet AI demand, with key financial and timing details still undisclosed.

Overview

  • Elon Musk said SpaceX has acquired xAI, combining launch capabilities with AI assets including the social platform X.
  • Company statements outline plans for solar-powered, space-based data centers, and recent FCC filings reference a satellite system that could scale up to one million units.
  • SpaceX intends to use Starship to deploy the constellation, with the company touting a prospective cadence of one launch per hour carrying 200-ton payloads.
  • Media reports citing Bloomberg put the combined valuation near $1.25 trillion and say the company is considering a mid-June IPO that could raise up to $50 billion.
  • Regulatory, technical and environmental hurdles remain, and one outlet reports some investors expressed concern about potential dilution and xAI’s losses.