Elon Musk has always played the long game. Electric cars when Detroit laughed. Reusable rockets, when aerospace said “good luck.” AI before Wall Street fully wrapped its head around compute economics. But folding SpaceX and xAI into a single $...
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SpaceX Absorbs xAI, Creating a $1.25T Space-AI Giant
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Subscribe06 FEB 2026 / BUSINESS
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Elon Musk has merged SpaceX and AI firm, xAI into a single entity valued at $1.25 trillion. The move combines SpaceX's profit-making ventures and xAI's high expenditure on large-scale AI models, while establishing Musk's vision for the future of AI infrastructure, which he believes will be best served in space, boasting structural advantages over terrestrial computing. The merger, and a potential June IPO, could create a company that controls rockets, satellites, AI models, and global social distribution platforms to revolutionize AI scalability, despite current high costs and uncertainties around the space-based AI market.
Elon Musk has always played the long game. Electric cars when Detroit laughed. Reusable rockets, when aerospace said “good luck.” AI before Wall Street fully wrapped its head around compute economics. But folding SpaceX and xAI into a single $...
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