Elon Musk announced that SpaceX has acquired his AI startup xAI in a record-setting deal. The merger combines his rocket-and-satellite company with the Grok chatbot maker. Musk said the deal will expand AI and space ambitions while creating a unified ecosystem across his companies.
The acquisition values SpaceX at $1 trillion and xAI at $250 billion. Investors in xAI will receive 0.1433 SpaceX shares per xAI share. Some executives may choose cash instead at $75.46 per share. The combined company expects to price shares at about $527 each.
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Experts say the deal strengthens SpaceX’s data-center and AI capabilities. It positions the company to compete with Google, Meta, Anthropic, and OpenAI. Analysts noted that Starlink will now generate revenue from AI services and act as a global distribution network for AI and data. Musk called it the “next chapter” in understanding the universe and extending human consciousness to the stars.
SpaceX has acquired xAI, forming one of the most ambitious, vertically integrated innovation engines on (and off) Earth → https://t.co/3ODfcYnqfg pic.twitter.com/el40rCUBGe
— SpaceX (@SpaceX) February 2, 2026
The acquisition breaks the record for the world’s largest merger, surpassing Vodafone’s $203 billion Mannesmann deal in 2000. SpaceX was already valued at $800 billion, and xAI at $230 billion. The merger comes as SpaceX plans a blockbuster public offering later this year that could value it at over $1.5 trillion.
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Some analysts warn the deal may face regulatory scrutiny. Musk’s overlapping leadership roles, federal contracts with NASA and the Department of Defense, and shared proprietary technology could raise governance and national security concerns. Investors and regulators will monitor potential conflicts of interest and the movement of engineers and data across Musk’s companies.