SpaceX has acquired xAI in a deal that combines two of Elon Musk's biggest companies.
Why it matters: It dramatically reshapes SpaceX's looming IPO, giving investors access to a dominant space company and a frontier AI model developer.
What they're saying: "SpaceX has acquired xAI to form the most ambitious, vertically-integrated innovation engine on (and off) Earth," Musk wrote.
- "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!"
Zoom in: The deal values the combined company at roughly $1.2 trillion, stepping SpaceX up from about $800 billion and putting xAI north of $200 billion, per a source familiar with the transaction.
- The percentage uplift in valuation is larger for SpaceX, while xAI shareholders effectively get a lifeline through the deal.
Flashback: Musk is no stranger to merging his companies, having put X (the former Twitter) and xAI together last year.
This is breaking news. Check back for updates.
