Elon Musk has officially merged his rocket company, SpaceX, with his artificial intelligence venture, xAI, announcing that the two entities are now one company in a move that consolidates his ambitions in space exploration, satellite technology, and advanced AI.
The acquisition was confirmed on Monday, February 2, 2026, in a statement on SpaceX’s website and echoed by Musk on X, where he posted: “To the stars! @SpaceX & @xAI are now one company.” The combined entity is valued at approximately $1.25 trillion, with SpaceX contributing the bulk of the valuation and xAI adding significant AI capabilities, positioning the new organization as the world’s most valuable private company.
xAI, founded by Musk in 2023 to “understand the true nature of the universe,” develops the Grok AI chatbot and operates the social media platform X (formerly Twitter), which was previously merged into xAI. The deal integrates xAI’s AI expertise, computing resources, and real-time data from X with SpaceX’s leadership in reusable rockets, Starlink satellite internet, and ambitious plans for Mars colonization.
In the announcement, Musk described the merger as forming “the most ambitious, vertically-integrated innovation engine on (and off) Earth,” encompassing AI, rockets, space-based internet, direct-to-mobile communications, and what he calls the world’s foremost real-time information and free speech platform.
A key driver behind the combination appears to be Musk’s vision for space-based data centers. SpaceX has recently sought regulatory approval to deploy up to one million satellites, which could support orbital computing infrastructure powered by solar energy. Such facilities would address the enormous power and cooling demands of training large AI models more efficiently than ground-based data centers, potentially giving the company a competitive edge in the global AI race.
The merger comes ahead of an anticipated initial public offering (IPO) for the enlarged SpaceX later in 2026, which analysts expect could be one of the largest in history. Reports indicate the company may seek a valuation exceeding $1.25 trillion in the public market, with a share price of around $527.
Industry observers note that the deal further intertwines Musk’s ecosystem of companies, following last year’s merger of X with xAI. It raises questions about potential future consolidations, including with Tesla, though no such plans have been confirmed.
Critics have pointed to the rapid succession of mergers amid high cash burn in AI development, but supporters argue the move accelerates breakthroughs in multi-planetary life, advanced intelligence, and global connectivity.
The full announcement is available on SpaceX’s website and xAI’s site.