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SpaceXxAI Merger Sets $1.25 Trillion Giant Ahead of Planned IPO

Investors now weigh a space-based AI vision many analysts call unproven.

Overview

  • Bloomberg’s estimate cited by multiple outlets puts the merged company near a $1.25 trillion valuation, largely driven by SpaceX’s business.
  • SpaceX filed plans with the FCC describing satellites that would host AI compute, and Elon Musk later floated a constellation of up to one million orbital data‑center satellites.
  • Analysts told NBC News the concept is conceivable but likely many years away, diverging from Musk’s two‑to‑three‑year timeline.
  • The tie-up is being framed as pre-IPO positioning for a listing later this year that some expect could be the largest on record, with critics calling it classic valuation storytelling.
  • Tesla disclosed about $2 billion in xAI preferred stock and a framework to explore AI collaboration, as commentators noted xAI’s heavy cash burn and warned of reputational and regulatory risks tied to xAI and X.