Key Highlights:
- SpaceX acquires xAI in the world’s largest-ever M&A deal, surpassing Vodafone–Mannesmann.
- The deal values SpaceX at $1 trillion and xAI at $250 billion.
- Elon Musk aims to merge AI, space, and data infrastructure under one company.
- The move could shape SpaceX’s IPO plans, AI strategy, and regulatory scrutiny.
SpaceX has acquired xAI in a record-setting transaction that reshapes the global technology landscape. The deal unifies Elon Musk’s artificial intelligence and space ambitions under a single corporate roof. It matters because it brings AI development, satellite networks, and space infrastructure into one tightly integrated system.
The acquisition values SpaceX at $1 trillion and xAI at $250 billion, according to people familiar with the matter. This makes it the largest merger and acquisition deal in history, overtaking Vodafone’s $203 billion takeover of Mannesmann in 2000.
What is the SpaceX–xAI deal?
Under the agreement, xAI investors will receive 0.1433 shares of SpaceX for every xAI share they hold. Some senior executives may choose a cash payout of $75.46 per share instead. The combined company is expected to price shares at around $527, sources said.
Elon Musk described the deal as a long-term step toward scaling intelligence beyond Earth. The acquisition formally links SpaceX’s launch, satellite, and defense capabilities with xAI’s Grok chatbot and AI research stack.
Why does SpaceX want an AI company?
AI development is expensive. It depends heavily on advanced chips, large data centers, and massive energy supply. By acquiring xAI, SpaceX gains a direct pathway to deploy AI workloads across its satellite network and future space-based infrastructure.
The deal also positions SpaceX more directly against AI rivals backed by Alphabet, Meta, Amazon, Anthropic, and OpenAI.
How does this affect SpaceX’s IPO plans?
SpaceX was already the world’s most valuable private company. It was last valued at $800 billion during a recent insider share sale. Sources say the combined entity could pursue a public listing later this year, with a potential valuation exceeding $1.5 trillion.
If that happens, it would be one of the largest IPOs ever attempted.
What about regulation and scrutiny?
The merger may attract attention from regulators. SpaceX holds billions of dollars in U.S. federal contracts with NASA, the Department of Defense, and intelligence agencies. These bodies have authority to review mergers for national security risks.
Governance concerns may also arise due to Musk’s leadership roles across Tesla, Neuralink, and other ventures.
What this means next
By merging AI, space, and data infrastructure, SpaceX is building a vertically integrated ecosystem few companies can match. The deal signals a future where AI development is no longer limited to Earth-based data centers but extends into orbit and beyond.
