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Musk Merges xAI Into SpaceX, Setting Up IPO and Space-Based AI Push

The move advances Musk’s plan to shift AI computation into orbit to scale capacity without terrestrial power constraints.

Overview

  • SpaceX confirmed it acquired xAI, with company communications announcing the deal and Nevada records indicating completion on February 2.
  • A mid‑2026 public listing is being prepared, with Bloomberg reporting a potential combined valuation near $1.25 trillion and the proceeds expected to help fund Starship.
  • SpaceX has applied to the FCC to deploy up to one million satellites designed to host solar‑powered data centers for AI workloads.
  • The combined operation brings together Starlink, the Grok chatbot and the social platform X, as Musk argues that space‑based AI is the only scalable path long term.
  • xAI’s Grok faces ongoing investigations in Europe, India and California over harmful content, underscoring regulatory and reputational risks for the merged company.