February 4, 2026 Elon Musk merges SpaceX and xAI in a $1.25 trillion all-stock deal aimed at scaling AI development and space-based computing infrastructure. Credit: Wikimedia Commons / Trevor Cokley / Public Domain Elon Musk is merging SpaceX and xAI under a single corporate umbrella through an all-stock deal that values the combined company at about $1.25 trillion. The move supports a broader strategy to expand artificial intelligence capabilities alongside space infrastructure and orbital computing. Musk disclosed the transaction in a signed statement posted on SpaceX’s website. Sources familiar with the deal say internal valuations put SpaceX at $1 trillion and xAI at $250 billion. Management also informed employees through a company-wide memo. Musk unifies SpaceX and xAI into one AI and space platform Company leaders describe the merger as a step toward tightly linking several technology layers. Specifically, the plan connects launch systems, satellite networks, AI engines, and real-time global information platforms. Rather than operating as separate businesses, these capabilities will now function as one integrated stack. Under the new structure, the group will house rocket operations, orbital connectivity, AI model training systems, and large-scale compute resources inside a single entity. Public offering still on the roadmap Even after the merger, the company still plans a public share offering later this year, according to people involved in internal planning. Previously, SpaceX prepared a fundraising round that could raise as much as $50 billion, which would rank among the largest equity offerings on record. People briefed on the terms say internal documents reference a share value of $526.59 for the merged company. The transaction uses stock only. So far, representatives from SpaceX and xAI have not provided public comment. Valuations have climbed rapidly Both companies entered the merger following sharp valuation gains in recent funding rounds. In January, xAI raised capital at a reported $230 billion valuation. Meanwhile, SpaceX prepared a December share sale that implied a valuation near $800 billion. However, the public announcement did not include final pricing mechanics. Musk points to orbit as future AI compute hub Musk argues that space may soon offer the lowest-cost environment for large-scale AI computation. Within two to three years, he expects off-planet processing to beat Earth-based systems on both cost and scale. In his view, orbital infrastructure could enable faster model training and higher data throughput. As a result, companies could accelerate discoveries in physics and applied technology. To support that plan, SpaceX is now seeking regulatory approval to deploy up to one million satellites in Earth orbit for expanded compute and communications capacity. Musk deepens integration of SpaceX and xAI The deal also strengthens ties across Musk’s technology portfolio. After acquiring Twitter in 2022 and renaming it X, he later combined the platform with xAI in a separate $33 billion transaction. xAI, which builds the Grok chatbot, runs highly compute-intensive operations and spends about $1 billion per month on advanced AI research. By merging with SpaceX, the company gains more capital access, engineering depth, and processing power. At the same time, the transaction further blurs the lines between Musk’s AI and space businesses. See all the latest news from Greece and the world at Greekreporter.com. Contact our newsroom to report an update or send your story, photos and videos. Follow GR on Google News and subscribe here to our daily email! Facebook