SpaceX acquired Elon Musk's startup xAI for $250 billion

SpaceX, led by Elon Musk, acquired his own artificial intelligence startup xAI. The deal was confirmed in an official statement on the SpaceX website. According to Bloomberg, SpaceX received a valuation of $1 trillion, while the value of xAI was $250 billion. The total valuation of the merged company is $1.25 trillion.

What is known

The statement noted that SpaceX acquired xAI with the aim of creating "the most ambitious vertically integrated innovation mechanism on Earth and beyond." It is about combining areas of AI, rocket manufacturing, satellite internet, mobile communications, and a platform for real-time information exchange.

According to Bloomberg sources, the price of one share of the merged company will be $526.59. Representatives of SpaceX and xAI have not publicly commented on the terms.

At the time of the merger, xAI had a valuation of $230 billion after a funding round in January, and SpaceX was preparing for a new stock placement at the end of 2025 with an estimated value of about $800 billion. The company also plans to go public this year.

Musk explained the decision by saying that in 2-3 years, the cheapest way to compute for AI will be using space capabilities. To this end, SpaceX has applied to the FCC to launch up to a million satellites. Such data centers are expected to provide significant savings and scalability for training AI models.

According to Bloomberg, xAI, which is developing the Grok chatbot, spends about $1 billion a month.

Source: Bloomberg