SpaceX absorbs xAI in an all-stock deal valuing the combined company at about $1.25 trillion

SpaceX

SpaceX acquired Elon Musk's AI company xAI on February 2, 2026 in an all-stock deal reported to value the combined company at about $1.25 trillion, with xAI valued at $250 billion. Musk said the main reason was to use Starship to build solar-powered orbital data centers for AI compute.

• Deal structure: stock-for-stock, xAI share valued at $75.46, SpaceX at $526.59; combined valuation $1.25 trillion
• xAI valued at $250 billion; SpaceX at $1 trillion pre-deal
• Strategic goal: develop orbital data centers using Starship as launch vehicle for space-based AI compute
• Rationale: space-based AI data centers address terrestrial cooling and power demands at scale through solar energy