Tue, 03 Feb 2026

Tue, 03 Feb 2026 SpaceX to take over Elon Musk's AI firm

Musk's space exploration company and his AI start-up are merging.
Elon Musk's SpaceX has acquired his artificial intelligence (AI) start-up xAI, a move that combines AI with rockets, space-based internet, and media under one roof. The deal values xAI at $125 billion and makes it the most valuable private company ever, alongside SpaceX which is reportedly worth $1 trillion. The acquisition comes after Tesla invested $2 billion in xAI last month, with Musk envisioning xAI as an "orchestra conductor" for Tesla factories employing autonomous robots. The deal has sparked concerns among some shareholders who had questioned the decision to divert resources to another Musk firm. SpaceX is also reportedly planning to list its shares for public trading, which would make it one of the most valuable companies in the world. Emily Zheng, a senior analyst at Pitchbook, said that consolidating xAI with SpaceX ahead of an Initial Public Offering (IPO) allows the company to present a unique growth narrative to public investors. The acquisition is part of Musk's efforts to unify his business interests, with Neuralink and The Boring Company being the only two smaller companies not yet brought under one of his larger operations. xAI started out as a segment of X, formerly known as Twitter, but was independently incorporated in 2025 after its value surpassed that of X. The deal also aligns with Musk's ambitions for space-based AI, which he believes will provide the solution to energy needs faced by AI firms. In his memo announcing the merger, Musk wrote that launching AI satellites from Earth would be the "immediate focus" and ultimately enable expansion to the Universe.
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