In an official statement posted on the SpaceX website, Musk emphasized that the merger of these two companies will create an "innovation machine" capable of simultaneously developing rockets, providing internet, engaging in artificial intelligence, and managing social media.
Although the details of the deal have not been disclosed, sources claim that the value of xAI is estimated at $125 billion, while SpaceX is valued at $1 trillion, making it the highest-valued private company in history.
In January, Tesla, another company managed by Musk, announced plans to invest $2 billion in xAI.
At that time, Musk informed investors that xAI would serve as the "conductor of the orchestra" for Tesla factories, where autonomous robots would be employed. He also announced plans to halt production of the older Model S and X electric vehicle models to retool factories for the production of humanoid robots called Optimus.
According to reports, SpaceX is considering going public (IPO). Pitchbook analyst Emily Zheng believes that the merger of SpaceX with xAI could be preparation for this IPO.
She noted: "The consolidation of companies before an IPO allows SpaceX to demonstrate growth potential and efficient capital utilization to prospective investors."
Space Data Centers
Musk, in his merger announcement, expressed the view that space could be a solution to the energy shortage problem for companies engaged in artificial intelligence.He noted that "in the long term, AI operating in space is the only way to scale" and added that he plans to focus on launching satellites designed to support AI "in the near future".
The creation of space data centers will open new opportunities that will allow funding and operating self-evolving bases on the Moon, a new civilization on Mars, and ultimately, expansion on a universal scale.Musk hopes that space data centers will be able to harness energy from solar panels, while keeping operational costs minimal. To achieve this, he plans to launch 1 million satellites into orbit using Starship rockets, which, according to him, will be able to take off every hour and carry up to 200 tons of payload.
Originally created as a division of the social network X (formerly Twitter), xAI was spun off in the spring of 2025 and is estimated by investors to be worth more than the X platform itself.
Later, the startup acquired this social network, with Musk stating that the deal would allow for the integration of "data, models, computations, distribution, and employees" into a single entity.
Photo on the homepage: Reuters.
