Elon Musk is fusing his space giant SpaceX with AI powerhouse ‘xAI’ in a blockbuster acquisition that shocks the tech world. Investors in xAI snag 0.1433 SpaceX shares per xAI share, pegging the deal at a combined $1.25 trillion valuation as of February 3, 2026.
Deal Breakdown
The exchange ratio values xAI around $250 billion, with SpaceX hitting $1 trillion up from its $800 billion mark in a December 2025 share sale.
This marks not just the next chapter, but the next book in SpaceX and xAI’s mission: scaling to make a sentient sun to understand the Universe and extend the light of consciousness to the stars!
Bloomberg notes the merged entity’s shares could price at $527, fueling a 2026 IPO eyed at up to $1.5 trillion or $50 billion raise.
Strategic Fusion
This isn’t just a buyout; it’s Musk’s masterstroke to blend Starlink satellites, reusable rockets, and xAI’s Grok AI. SpaceX’s orbital ambitions meet xAI’s supercomputer, targeting space-based data centers. xAI, has closed a deal of a $20 billion Series E in January pushing valuation past $230 billion.
Future Impact
Analysts see the combo dominating AI infrastructure, with Starship launches enabling orbital servers by 2027. Expect volatility in the IPO, but at $1.25 trillion, it redefines tech empires. Musk’s net worth could soar past $800 billion. Risks linger if regulatory scrutiny hits satellite swarms, yet the upside in AI-space convergence looks unstoppable.
