SpaceX completes acquisition of xAI for $250 billion valuation

In short: SpaceX has already bought xAI, combining Elon Musk’s space company with his AI company.

What happened

SpaceX has completed its acquisition of xAI, according to reporting by The New York Times. The deal was announced in early February 2026.

The companies were valued at very large numbers in the report, SpaceX at about $1 trillion and xAI at about $250 billion. That makes it one of the biggest mergers ever reported.

SpaceX said the combination brings together rockets and satellites with xAI’s artificial intelligence work, including the Grok chatbot (a chat tool that answers questions in a conversation). SpaceX also described plans that mix “space-based internet” and “direct to mobile device communications,” meaning services that can connect to phones without relying only on cell towers.

Why it matters

This deal could affect how AI services are built and delivered. One idea SpaceX pointed to is putting more “compute” in orbit or near space, which means placing powerful computers closer to its satellite network (like moving a warehouse closer to customers to speed up delivery). SpaceX also suggested this could reduce reliance on Earth-based power grids and help provide faster AI access worldwide through satellites.

The timing also matters because SpaceX is reportedly planning an initial public offering, or IPO (when a private company starts selling shares to the public), that could value it at more than $1.5 trillion. Buying xAI could make SpaceX look less like only a rocket company and more like a company competing in AI and large data centers, which are facilities filled with computers that run online services.

Source: NYTimes