New Delhi: Elon Musk has merged SpaceX with xAI, forming a combined company valued at a staggering $1.25 trillion. The deal assigns a $1 trillion valuation to SpaceX and $250 billion to xAI, according to people familiar with the matter. The all-stock transaction brings together rockets, satellites, artificial intelligence, and real-time digital platforms under one roof. In a statement, Musk said the goal is to build a vertically integrated innovation engine spanning AI, spaceflight, satellite internet, and direct-to-device communications. Employees were informed of the valuation in an internal memo, and the company is still expected to pursue an initial public offering later this year. One company, many frontiers Musk said the merger is designed to accelerate breakthroughs by tightly linking computing power with space infrastructure. He believes that within a few years, running large AI workloads in orbit could become cheaper than on Earth, opening the door to faster model training...
- Pragya Singha Roy
- Updated on: Feb 03, 2026 | 10:19 AM