SpaceX acquires Elon Musk’s xAI, creating more than $1 trillion private company

SpaceX said on Monday, Feb. 2, 2026, that it had acquired xAI, the artificial intelligence company controlled by Elon Musk, in a deal the companies said creates the most valuable private company on earth, worth more than $1 trillion. The exact financial terms were not disclosed. The acquisition, SpaceX confirmed on its website and by sharing a memo from Mr.

Musk, was described as a move to combine rockets, an A.I. chatbot, satellite internet and the social media platform X. Two people familiar with the plan, who spoke on the condition of anonymity, said the combined company would probably move forward with an initial public offering around June and that Mr.

Musk hopes to raise about $50 billion. People familiar with an investor briefing said the deal would be paid for by issuing $250 billion in new SpaceX shares; SpaceX told investors it was valued at $1 trillion, up from roughly $800 billion in December, and the deal valued xAI at $250 billion, the people said.

Ross Gerber, an investor in Mr. Musk’s ventures, posted that investors had been told the combined company was valued at $1.25 trillion. In a memo to employees, Mr. Musk said SpaceX acquired xAI to build “the most ambitious, vertically-integrated innovation engine on (and off) Earth,” and that a primary driver of the transaction was building data centers in space.

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