SpaceX has acquired Elon Musk’s artificial-intelligence startup xAI in a landmark transaction that merges Musk’s space and AI ambitions, the billionaire entrepreneur announced on Monday.
The acquisition combines SpaceX, the rocket-and-satellite company, with xAI, the creator of the Grok chatbot, in one of the most ambitious technology-sector tie-ups to date.
The deal, first reported last week by Reuters, is valued at roughly $1 trillion for SpaceX and $250 billion for xAI, according to sources familiar with the matter. Investors in xAI are set to receive 0.1433 SpaceX shares for each xAI share, while some executives may opt for cash at $75.46 per share instead.
Musk described the acquisition as a major step in expanding both companies’ missions. “This marks not just the next chapter, but the next book in SpaceX and xAI’s mission: scaling to make a sentient sun to understand the Universe and extend the light of consciousness to the stars!” he said.
The purchase sets a new record for global mergers and acquisitions, surpassing the $203 billion Vodafone-Mannesmann deal in 2000. The combined entity is expected to price shares at around $527 each. SpaceX was last valued at $800 billion in a private share sale, while xAI was valued at $230 billion in November 2025.
The merger comes as SpaceX prepares a blockbuster public offering this year, which could push its valuation beyond $1.5 trillion. Analysts say the deal strengthens Musk’s business ecosystem—informally dubbed the “Muskonomy” which already includes Tesla, Neuralink, and the Boring Company.
Musk has a history of integrating his ventures. Last year, he merged social media platform X into xAI via a share swap, providing the AI startup with access to data and distribution. In 2016, he used Tesla shares to acquire SolarCity, his solar-energy firm.
Experts warn the deal could attract regulatory and investor scrutiny due to potential governance issues, overlapping leadership roles, and the movement of engineers, technology, and government contracts between the two companies. SpaceX holds billions in federal contracts with NASA, the Department of Defense, and intelligence agencies, all of which could review the merger for national security concerns.
The acquisition positions Musk to further consolidate his influence across space exploration, AI, and technology sectors, intensifying competition with rivals such as Alphabet, Meta, Amazon-backed Anthropic, and OpenAI.
