SpaceX has acquired artificial intelligence firm xAI, formally merging two of Elon Musk’s most ambitious ventures and creating what is now the world’s most valuable private company. The announcement was made on Monday.
“This marks not just the next chapter, but the next book in SpaceX and xAI’s mission,” Musk said in a statement released on SpaceX’s website.
Elon Musk, xAI: Valuations Before and After the Merger by Elon Musk
Prior to the deal, SpaceX was valued at $800 billion following a secondary share sale conducted in December 2025. xAI, meanwhile, was valued at $230 billion based on its most recent funding round in January, according to PitchBook, a firm that tracks private company valuations.
Following the merger, SpaceX has been valued at $1 trillion, while xAI’s valuation has been set at $250 billion. The combined entity is valued at approximately $1.25 trillion.
Why did Elon Musk Merge xAI and SpaceX?
The acquisition comes amid SpaceX’s expanding ambitions in orbital infrastructure. On Friday, just days before the merger announcement, SpaceX sought permission from the Federal Communications Commission to launch a constellation of one million satellites into orbit.
According to the FCC filing, the proposed constellation would serve as a network of solar-powered data centres designed to “accommodate the explosive growth of data demands driven by AI.”
Musk has said he believes that space-based infrastructure could soon transform the economics of artificial intelligence. He estimates that the “lowest cost way to generate AI compute will be in space” within the next two to three years.
Elon Musk Crosses $800 Billion Net Worth Milestone
The merger has had a dramatic impact on Musk’s personal wealth. Elon Musk has now become the first person in history to be worth $800 billion or more. According to Forbes estimates, the deal increased his net worth by $84 billion, taking his total fortune to a record $852 billion.
Before the acquisition, Musk held an estimated 42% stake in SpaceX, worth approximately $336 billion. This valuation was based on a tender offer launched in December that valued the privately held rocket company at $800 billion.
He also owned an estimated 49% stake in xAI, valued at around $122 billion, based on a private fundraising round earlier this month that pegged the AI firm’s valuation at $250 billion.
Following the merger, Forbes estimates that Musk now owns a 43% stake in the combined company, worth roughly $542 billion.
Zubair Amin is a Senior Journalist at NewsX with over seven years of experience in reporting and editorial work. He has written for leading national and international publications, including Foreign Policy Magazine, Al Jazeera, The Economic Times, The Indian Express, The Wire, Article 14, Mongabay, News9, among others. His primary focus is on international affairs, with a strong interest in US politics and policy. He also writes on West Asia, Indian polity, and constitutional issues. Zubair tweets at zubaiyr.amin
