tech
February 3, 2026
Elon Musk is taking SpaceX’s minority shareholders for a ride
Merger with loss-making xAI looks to some investors more like a bailout than a rocket trip to the future
TL;DR
- SpaceX is acquiring xAI for $1.25 trillion in an all-share transaction.
- Elon Musk describes the combined entity as an "ambitious, vertically integrated innovation engine."
- Minority shareholders in SpaceX may see the deal as a bailout for the loss-making xAI.
- xAI is linked to the X platform, which has faced recent controversies.
- SpaceX is a profitable market leader with revenues of $16 billion, while xAI is a startup with revenues under $1 billion.
- The article suggests SpaceX is overpaying for xAI in the transaction.
- The deal's structure benefits Musk, who has stakes in both companies, but could disadvantage SpaceX's long-term outside investors.
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