SpaceX Acquires xAI, Targets 2026 IPO While Maintaining Separate Operations

SpaceX completed its acquisition of AI startup xAI on February 2, 2026, with internal documents confirming the company will retain its name, mission, and valuation in the near term. The combined entity continues to target a potential IPO in 2026, though timing and valuation remain uncertain. xAI informed employees that individual equity impacts will be clarified soon, and all-hands meetings and merger-related training sessions are scheduled. Despite the acquisition, SpaceX and xAI will operate independently due to regulatory restrictions on sharing defense- and space-related data. xAI staff cannot access SpaceX systems without explicit approval, though limited tool-sharing from xAI to SpaceX may occur. Elon Musk, CEO of both firms, described the deal as creating a vertically integrated innovation engine spanning AI, rockets, satellite internet, and social media, with ambitions to deploy data centers in space.