SpaceX Acquires xAI in $250 Billion Record Deal, Merges AI and Space Ambitions
Elon Musk’s SpaceX has acquired his AI startup xAI in a landmark $250 billion transaction, merging the Grok chatbot maker with his rocket-and-satellite company. The deal, valuing SpaceX at $1 trillion, is the largest M&A in over 25 years, surpassing Vodafone’s $203 billion Mannesmann takeover in 2000.
Musk described the merger as “not just the next chapter, but the next book” in SpaceX and xAI’s mission to “extend the light of consciousness to the stars.” The combined company’s shares are expected to price at roughly $527 each.
The acquisition strengthens SpaceX’s AI and data-center ambitions, putting it in competition with Google, Meta, Anthropic, and OpenAI. It also consolidates Musk’s sprawling business empire—including Tesla, Neuralink, and the Boring Company—into a tighter ecosystem, often dubbed the “Muskonomy.”
Musk has previously merged his ventures for strategic advantage, including integrating social media platform X into xAI last year and using Tesla stock to acquire SolarCity in 2016.
The deal could draw regulatory scrutiny over governance, valuation, and conflicts of interest, particularly given SpaceX’s federal contracts with NASA, the Department of Defense, and intelligence agencies.
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