Techbytes: Elon Musk unites SpaceX, xAI to create one of world’s most valued tech mergers in recent history

Elon Musk announced on Monday that SpaceX has acquired his artificial-intelligence startup xAI in a landmark deal that merges his AI and space ambitions. The acquisition combines the rocket-and-satellite company with the maker of the Grok chatbot, creating one of the most ambitious technology tie-ups in recent history, according toReuters. The transaction values SpaceX at US$1 trillion and xAI at US$250 billion, according to a person familiar with the matter.

Investors in xAI will receive 0.1433 shares of SpaceX for every share of xAI, with some executives having the option to take cash instead of stock at $75.46 per share. The move positions Musk to further integrate AI, space, and data operations, potentially reshaping the technology and aerospace sectors while consolidating his influence across multiple industries. “This marks not just the next chapter, but the next book in SpaceX and xAI’s mission: scaling to make a sentient sun to understand the Universe and extend the light of consciousness to the stars!” Musk said.

SpaceX, already the world’s most valuable privately held company, was last valued at $800 billion in a recent insider share sale, while xAI’s valuation stood at US$230 billion in November. The merger comes as SpaceX plans a blockbuster public offering later this year that could value the company at over $1.5 trillion, according to sources. The deal further consolidates Musk’s sprawling business empire – dubbed by some analysts the “Muskonomy” – which also includes Tesla, Neuralink, the Boring Company, and X (formerly Twitter).

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The acquisition could draw scrutiny from regulators and investors over governance, valuation, and potential conflicts of interest, given Musk’s overlapping leadership roles. SpaceX also holds billions of dollars in federal contracts with NASA, the Department of Defense, and intelligence agencies, which may have authority to review the deal for national security concerns. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express permission from ZAMBIA MONITOR.

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