SpaceX acquires xAI in $1.25T mega-merger
Elon Musk just announced the merger of his AI startup xAI with SpaceX, forming what’s now the highest-valued private company on the planet at a reported $1.25T — combining his rockets, Grok, and the X platform all under one entity.
The details:
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xAI will operate as a division within SpaceX, with Musk pitching a vision of launching AI data centers into orbit to overcome Earth’s energy constraints.
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The merger comes ahead of an anticipated SpaceX IPO later this year, expected to push the company’s valuation to $1.25T.
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Musk estimated that space-based AI compute will be cheaper than traditional data centers within 2-3 years, powered by near-constant solar energy.
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He also said space-based data centers will “enable self-growing bases on the Moon, an entire civilization on Mars… and expansion to the Universe.”
Why it matters: Elon’s tech empire is consolidating fast, calling this merger “the most ambitious, vertically-integrated innovation engine on (and off) Earth.” Data centers in space may sound wild, but Musk isn’t alone in eyeing that solution — and with SpaceX now in the mix, nobody is better positioned to own that opportunity.
Source: The Rundown
