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SpaceX Acquires xAI as Musk Prepares $1.25 Trillion Company for 2026 IPO

The tie-up backs a plan to build solar-powered AI data centers in orbit and finance Starship launches, with an FCC filing seeking approval for a massive new satellite network.

Overview

  • SpaceX announced it bought xAI, combining Grok, Starlink and the social platform X within a single corporate structure.
  • Internal communications and investor briefings put the combined valuation near $1.25 trillion, with shares discussed around $526–$527 and an estimated seven-to-one xAI-to-SpaceX conversion.
  • SpaceX filed with the FCC to deploy up to one million satellites intended to host orbital data centers powered by continuous solar energy.
  • The company is targeting a mid‑2026 IPO that could raise tens of billions to fund Starship operations and large‑scale orbital compute, pending market and regulatory conditions.
  • xAI’s Grok remains under investigation in Europe, India and California over sexually explicit image generation, and SpaceX is probing a recent Falcon 9 upper‑stage anomaly after a Starlink mission.