SpaceX Officially Acquires xAI, Creating a $1.25 Trillion Tech Giant

Liputan6.com, Jakarta - SpaceX, Elon Musk's leading aerospace company, officially announced the acquisition of xAI, an artificial intelligence (AI) company also founded by Musk.

This announcement, made on Monday, February 2, 2026, marks the unification of two key pillars of the innovator's business empire.

SpaceX confirmed its agreement to acquire xAI, a small company known for its Grok chatbot, and posted a memo from Musk about the merger on its website.

In the memo, Musk said the combination would form an "innovation engine" that brings together AI, rockets, the space-based internet, and media under one roof.

This strategic move unites Musk's ambitions in space exploration with his vision for advancing artificial intelligence, creating a combined entity estimated to have a valuation of approximately $1.25 trillion.

This valuation has the potential to make the merged company the most valuable private company in the world, with a stock price estimated at $527 per share.

Elon Musk stated that this merger is crucial to creating "the most ambitious, vertically integrated innovation engine" both on Earth and in space.

To the stars!@SpaceX & @xAI are now one company https://t.co/2SPVVhZQsp

— Elon Musk (@elonmusk) February 3, 2026

"To the stars! @SpaceX & @xAI are now one company," Elon Musk said in his tweet.

Elon Musk's vision extends beyond Earth's boundaries with an ambitious plan to build a "space-based data center," or "orbital data center."

This concept involves a constellation of up to one million AI satellites that would harness solar energy in space for massive AI computing needs.

Musk predicts that within the next two to three years, the most economical way to generate AI computing will be in space.

Utilizing space resources is expected to overcome the limitations of existing infrastructure and energy on Earth, paving the way for faster and more efficient AI innovation.

To realize this vision, SpaceX has applied to the Federal Communications Commission (FCC) for authorization to launch these AI satellites.

This acquisition financially ties xAI, which is known for its capital-intensive nature, with SpaceX's space technology business, which has strong financial performance.

By 2025, SpaceX is expected to post profits of approximately $8 billion on revenue of approximately $15 billion.

The combined SpaceX and xAI entity is estimated to have a valuation of approximately $1.25 trillion, with shares likely priced at around $527 per share.

This makes the combined company a major player in the global technology landscape, even before a potential initial public offering (IPO).

SpaceX itself is expected to launch an IPO this year, aiming to raise $50 billion.

Previously, in December 2025, SpaceX was valued at $800 billion after a secondary share sale and had previously pursued an IPO with a valuation of $1.5 trillion.

Meanwhile, xAI is reportedly valued at at least $230 billion after raising $20 billion the previous January.

This merger is Elon Musk's second move in less than a year to consolidate his diverse business empire.

The merger effectively brings together SpaceX, a rocket developer and launcher; Starlink, a satellite internet business; xAI, developer of the large language model Grok; and and X, a social media platform.

Previously, in March 2025, xAI acquired X (formerly Twitter) in a deal that valued the AI ​​company at $80 billion and X at $33 billion.

While Musk owns other companies such as brain-chip interface startup Neuralink and tunneling company The Boring Co., this acquisition notably excluded Tesla (TSLA).

This occurred despite Tesla having just invested $2 billion in xAI the previous month, indicating that each entity still has its own strategic path within Musk's ecosystem.