SpaceX has officially acquired xAI, the artificial intelligence company also helmed by Elon Musk, consolidating his space and AI ventures under one corporate structure, the company announced on February 2, 2026. The deal brings xAI’s technology, including its Grok AI language model and the social media platform X (formerly Twitter), into the SpaceX organization.
According to SpaceX, the acquisition places xAI as a wholly owned subsidiary within the broader entity. Financial details of the transaction were not publicly disclosed, but multiple reports indicate the combined business could be valued at roughly $1.25 trillion ahead of a planned SpaceX initial public offering (IPO) later this year.
SpaceX’s announcement outlined the strategic goal of integrating advanced AI capabilities with its rocket and satellite operations, notably its Starlink global internet network. The merged structure is intended to support future initiatives such as space-based data centers designed to leverage solar power and orbital computation.
The acquisition also brings previously independent assets, like the social media platform X, which had been acquired by xAI in 2025, under the SpaceX umbrella. Observers note that the unified entity aligns Musk’s major technology and communications businesses as part of a broader push toward AI-enabled infrastructure and potential future regulatory review.
Sources
Reuters
xAI official news
Associated Press
