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SpaceX Absorbs xAI in $1.25 Trillion Plan for Orbital AI, Eyes 2026 IPO

The move ties AI models, Starlink and heavy‑lift launches into a bid to shift power‑hungry computing to solar data centers in orbit.

Overview

  • SpaceX confirmed the acquisition of xAI as Musk pitches space‑based data centers to bypass terrestrial power limits for AI workloads.
  • The company has asked the FCC to approve a constellation of up to one million satellites designed to host solar‑powered orbital data centers.
  • Investor guidance reported by Bloomberg and the Financial Times cites a combined valuation near $1.25 trillion, a per‑share price around $526–$527, and a roughly seven‑to‑one conversion of xAI into SpaceX shares.
  • Executives have discussed a potential IPO as soon as mid‑2026 that could raise up to about $50 billion, with proceeds framed as funding for Starship‑scale deployments.
  • The combined operation integrates Grok, Starlink and X, while Grok faces investigations in Europe, India and California, and SpaceX reviews a recent Falcon 9 anomaly after a Starlink mission.