Elon Musk has announced that his artificial intelligence (AI) startup, xAI, has been bought by SpaceX, his aerospace company. The rocketmaker tweeted Musk’s statement regarding the acquisition of xAI on his social media platform, X. After merging the two companies last year, Musk’s xAI now owns and runs his social network X. The combined business of SpaceX and xAI is valued at USD 1.25 trillion, according to a Bloomberg article, and SpaceX intends to make an IPO later this year.
To the stars!@SpaceX & @xAI are now one company https://t.co/2SPVVhZQsp
— Elon Musk (@elonmusk) February 3, 2026
The merger agreement between SpaceX and xAI was finalized on Monday, according to a CNBC report. By combining xAI with his social network X, formerly known as Twitter, Musk was able to expand xAI. In addition, the EU is looking into xAI’s flagship product Grok because of its AI picture production capability, raising suspicions that it was used to produce sexualized photos. According to xAI, Grok users are subject to limitations that restrict their ability to edit images.
In the meanwhile, Musk said that the merger of SpaceX and XAI would create a “innovation engine” that would house media, AI, rockets, and space-based internet under one roof.
“Scaling to make a sentient sun to understand the Universe and extend the light of consciousness to the stars is not just the next chapter, but the next book in SpaceX and xAI’s mission,” Musk declared.
The union would eventually enable the installation of solar-powered AI data centers in orbit, according to a news statement from SpaceX.
“My estimate is that the lowest cost way to generate AI compute will be in space within two to three years,” Musk stated. Innovative businesses will be able to advance in training AI models and processing data at previously unheard-of rates and scales because to this cost-effectiveness alone, hastening advances in our knowledge of physics and the development of technology that will benefit society.”
“This new constellation will build upon the well-established space sustainability design and operational strategies, including end-of-life disposal, that have proven successful for SpaceX’s existing broadband satellite systems.”
Following SpaceX’s formal request to the US Federal Communications Commission (FCC) last week to launch and run a constellation of up to one million satellites intended as orbital data centers with unparalleled processing capability for cutting-edge AI models and applications, the merger was announced.
(input from ANI)
Syed Ziyauddin is a media and international relations enthusiast with a strong academic and professional foundation. He holds a Bachelor’s degree in Mass Media from Jamia Millia Islamia and a Master’s in International Relations (West Asia) from the same institution.
He has work with organizations like ANN Media, TV9 Bharatvarsh, NDTV and Centre for Discourse, Fusion, and Analysis (CDFA) his core interest includes Tech, Auto and global affairs.
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