SpaceX acquires xAI, valuing the combined company at $1.25T

xAI

SpaceX announced it had acquired xAI in an all-stock deal valuing SpaceX at $1 trillion and xAI at $250 billion. SpaceX framed the merger around combining AI with rockets and Starlink, including plans for large constellations of solar-powered satellites acting as orbital data centres. xAI operates as a wholly-owned SpaceX subsidiary.

• All-stock acquisition valuing SpaceX at $1 trillion and xAI at $250 billion; largest M&A transaction ever recorded
• SpaceX-xAI combination aims to leverage rockets, Starlink and AI together with plans for solar-powered satellite constellations as orbital data centres
• xAI operates as wholly-owned subsidiary; merger preserves liquidity by avoiding cash outlays
• Deal bolsters SpaceX's data-centre ambitions as Musk competes with Google, Meta, Amazon-backed Anthropic and OpenAI in AI sector