Elon Musk has merged SpaceX with his artificial intelligence venture xAI in a blockbuster $1.25 trillion deal, consolidating key parts of his technology empire as the aerospace company prepares for a highly anticipated public offering later this year.
The agreement, announced Monday on SpaceX’s website, combines one of the world’s most valuable private space companies with a rapidly expanding AI business that includes the Grok chatbot and the social media platform X. The transaction reportedly values SpaceX at $1 trillion and xAI at $250 billion, positioning the unified company for a stock market float expected to exceed a $1 trillion valuation.
The planned IPO is projected for early summer, a timing that coincides with both a planetary alignment and Musk’s birthday. Musk turns 55 on June 28, around the same period Jupiter and Venus are set to appear in close proximity.
The merger deepens Musk’s long-term strategy of integrating artificial intelligence, aerospace engineering, satellite internet, and digital communications into a single ecosystem. In a joint statement, the companies described the combined entity as “the most ambitious, vertically-integrated innovation engine on (and off) Earth, with AI, rockets, space-based internet, direct-to-mobile device communications and the world’s foremost real-time information and free speech platform”.
At the core of the deal is Musk’s push toward space-based infrastructure to support artificial intelligence. The announcement emphasized the limitations of existing terrestrial data centers and framed orbital computing as essential for scaling AI systems.
“Current advances in AI are dependent on large terrestrial datacenters, which require immense amounts of power and cooling. Global electricity demand for AI simply cannot be met with terrestrial solutions, even in the near term, without imposing hardship on communities and the environment,” the announcement said.
“In the long term, space-based AI is obviously the only way to scale.”
The acquisition gives SpaceX ownership of xAI’s intellectual property, including Grok, as well as X, the social media platform Musk has increasingly integrated into his broader technology strategy. The move aligns with his previously stated ambition to deploy solar-powered satellites and orbital data centers to power next-generation AI workloads — a capital-intensive effort that would rely heavily on SpaceX’s launch capabilities and Starlink satellite network.
The merger also follows a series of cross-company transactions within Musk’s portfolio. Earlier in 2025, xAI acquired X in an all-stock deal, further consolidating Musk’s control over artificial intelligence and digital communications platforms. Last month, Tesla disclosed plans to invest $2 billion into xAI, signaling broader corporate alignment across Musk-led enterprises.
By combining space launch infrastructure, satellite internet, AI systems, and a global communications platform under one umbrella, Musk is positioning the merged company at the intersection of commercial spaceflight, artificial intelligence, renewable energy, and telecommunications — sectors attracting significant investor interest and regulatory scrutiny.
With a public listing expected within months, markets will closely watch how investors value what could become one of the largest technology IPOs in history.
