Musk’s SpaceX Combines With xAI at $1.25 Trillion Valuation

Elon Musk Said to Be Merging SpaceX and xAI Ahead of Mega IPO

Provide news feedback or report an error

Confidential tip?

Send a tip to our reporters

Site feedback:

Take our Survey

By Loren Grush, Edward Ludlow, and Liana Baker

February 2, 2026 at 9:04 PM UTC

Updated on

February 3, 2026 at 3:25 PM UTC

Elon Musk is combining SpaceX and xAI in a deal that values the enlarged entity at $1.25 trillion, as the world’s richest man looks to fuel his increasingly costly ambitions in artificial intelligence and space exploration.

The acquisition of xAI was announced in a statement on SpaceX’s website signed by Musk and confirming a Bloomberg News report earlier Monday.