SpaceX Integrates xAI: Elon Musk Unifies Business Ventures

Tue Feb 03 2026 12:28:01 GMT+0200 (Eastern European Standard Time)

Elon Musk's SpaceX has officially acquired his AI startup xAI amid plans to streamline his technological enterprises, merging innovations in AI, rocket technology, and media.

In a strategic move to consolidate his business interests, Elon Musk's SpaceX has taken over the artificial intelligence firm xAI, which is known for its Grok chatbot. This acquisition is part of Musk's vision to create an 'innovation engine' that integrates AI with SpaceX's operations. Though financial terms were not disclosed, xAI is reportedly valued at $125 billion, contributing to SpaceX's status as the most valuable private company at $1 trillion. Musk emphasizes the potential of space-based AI to address energy demands for technological advancement.

SpaceX Integrates xAI: Elon Musk Unifies Business Ventures

6 hours ago

Elon Musk's SpaceX is taking over his artificial intelligence (AI) startup, as the billionaire continues to unify some of his many business interests. SpaceX confirmed the deal to acquire xAI, a smaller firm known for its Grok chatbot, posting a memo from Musk about the merger on its website.

In the note, Musk said the combination would form an innovation engine putting AI, rockets, space-based internet, and media under one roof. He highlighted the possibility of space-based AI addressing the energy needs of technological ventures. Terms of the deal were not disclosed, but sources suggest xAI is valued at $125 billion while SpaceX stands at $1 trillion, marking it as the most valuable private company ever.

Last month, Tesla, Musk's electric car company, announced a $2 billion investment into xAI, showcasing Musk's vision of utilizing xAI as a pivotal element for enhancing Tesla's automated factories.

As part of its preparations for a potential public offering, SpaceX is streamlining multiple ventures and consolidating operations. Analysts note that this acquisition reinforces SpaceX’s strategy to position itself favorably in the public market.

Overall, Musk envisions an ambitious future where space-based AI will not only support Earth-based enterprises but will also facilitate the long-term aspirations of establishing human presence on the Moon and Mars.

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