SpaceX Acquires xAI in Record $1.25T Deal, Sets IPO Path

SpaceX has completed its acquisition of Elon Musk’s artificial intelligence startup xAI in a record-breaking transaction valuing the combined entity at approximately $1.25 trillion, according to sources familiar with the matter. The deal, finalized on February 2, 2026, offers xAI investors the option to exchange each share for either 0.1433 shares of SpaceX stock or $75.46 in cash, with the merged company’s implied share price set at $527. The transaction values SpaceX at $1 trillion and xAI at $250 billion, surpassing Vodafone’s $203 billion hostile takeover of Mannesmann in 2000 as the largest merger in history. The move consolidates Musk’s space and AI ambitions under one corporate structure ahead of a planned SpaceX initial public offering later in 2026, which could push its valuation above $1.5 trillion.