Mega Merger: Elon Musk Combines SpaceX and xAI into Single Company Valued at $1.25 TrillionLucas Nolan 3 Feb 2026
Elon Musk is combining SpaceX with his artificial intelligence startup xAI as the merged entity prepares for a massive IPO that could value the combined company at $1.25 trillion.
CNBC reports that Elon Musk has undertaken a significant consolidation of his business empire, revealing that SpaceX is acquiring his artificial intelligence company xAI in a deal that brings together two of his most valuable ventures. The transaction positions the merged entity for an IPO that Bloomberg reports could value the combined company at $1.25 trillion.
Musk disclosed the acquisition in a blog post on Monday, describing the creation of what he called “the most ambitious, vertically-integrated innovation engine on (and off) Earth, with AI, rockets, space-based internet,” along with the X social media platform. Public records filed with the state of Nevada and obtained by CNBC confirm that the deal closed on February 2, with Space Exploration Technologies Corp., SpaceX’s formal name, listed as the managing member of X.AI Holdings.
The merger represents the largest consolidation within Musk’s extensive portfolio of companies and unites two businesses that have experienced substantial growth in private market valuations. SpaceX conducted a secondary share sale last year at an $800 billion valuation, while xAI was valued at approximately $230 billion following a $20 billion funding round that concluded earlier this year.
The most recent xAI funding round attracted investment from major technology and financial institutions. Nvidia and Cisco Investments participated in the round, alongside long-standing Musk supporters including Valor Equity Partners, Stepstone Group, Fidelity, Qatar Investment Authority, Abu Dhabi’s MGX, and Baron Capital Group. Additionally, Tesla, Musk’s electric vehicle manufacturer and the primary source of his personal wealth, announced last week that it was investing roughly $2 billion into xAI.
Neither SpaceX nor xAI responded to inquiries about whether the merger might require regulatory review, including potential examination by the Committee on Foreign Investment in the United States, known as CFIUS.
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https://www.breitbart.com/tech/2026/02/03/mega-merger-elon-musk-combines-spacex-and-xai-into-single-company-valued-at-1-25-trillion/
