Musk Folds xAI Into SpaceX in Private Mega Deal

Elon Musk’s SpaceX is acquiring his AI start-up xAI, the company behind the Grok chatbot, in a move that consolidates AI, rockets, space-based internet, and media under one roof. The companies did not disclose terms, but a source familiar with the deal said it values xAI at $125bn and SpaceX at $1tn, a level that would make SpaceX the world’s most valuable private company. Musk framed the merger as an “innovation engine,” with a near-term focus on launching AI satellites and a longer-term plan for space-based data centers to meet AI’s energy and compute demands. The deal follows Tesla’s $2bn investment in xAI and arrives as SpaceX considers an IPO.