"Elon Musk is merging his rocket maker SpaceX with his artificial intelligence startup xAI in a deal that changes what a future SpaceX IPO represents. After rumors surfaced last week, Musk confirmed the move Monday in a SpaceX blog post, calling the combined company "the most ambitious, vertically integrated innovation engine on (and off) Earth," spanning AI, rockets, space-based internet, and his social media platform, X. Public records filed in Nevada and obtained by CNBC show the deal was completed February 2, with Space Exploration Technologies Corp. listed as the managing member of X.AI Holdings."
"Bloomberg reports the merged company is expected to price shares in an initial public offering that could value it at $1.25 trillion. At that scale, the story is no longer just about rockets. It is about AI, and Musk's claim that the future of compute will not be confined to Earth. Now it would also include a frontier AI company and a new thesis: AI cannot scale on terrestrial infrastructure. It must scale in orbit."
Elon Musk merged SpaceX with xAI, forming a vertically integrated company that spans AI, rockets, space-based internet, and the social platform X. Public records show the deal closed February 2 with Space Exploration Technologies Corp. listed as managing member of X.AI Holdings. Bloomberg reports the combined company could price an IPO valuing it at $1.25 trillion. The merger shifts investor exposure from aerospace—launch services, government contracts, Starlink, and Mars ambitions—to include frontier AI and a thesis that AI scaling will require orbital compute. SpaceX reported an estimated $8 billion profit on $15–16 billion revenue in 2025, while xAI remains cash-burning.
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