tech
February 3, 2026
Musk's xAI, SpaceX combo is the biggest merger of all time, valued at $1.25 trillion
The record-setting deal will be the largest merger of all time and is valued at $1.25 trillion

TL;DR
- SpaceX has acquired Elon Musk's AI startup xAI for $1.25 trillion.
- The deal values SpaceX at $1 trillion and xAI at $250 billion.
- A primary goal is to build 'orbital data centers'.
- The merger aims to provide more capital to xAI, which develops the Grok chatbot.
- xAI is competing with rivals like OpenAI and Anthropic.
- The deal is a share exchange, converting xAI shares into SpaceX stock.
- This acquisition precedes a potential blockbuster IPO for SpaceX later in the year.
- SpaceX is positioned to benefit from launching data centers in space due to AI demand.
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