SpaceX to Merge with xAI at $1.25 Trillion Valuation Ahead of IPO

Elon Musk plans to merge SpaceX and xAI ahead of a combined initial public offering, targeting a $1.25 trillion valuation, Bloomberg reported on February 2, 2026, citing unnamed sources. The merged entity would price shares at approximately $527 each. The deal, outlined in an internal memo, aims to consolidate Musk’s assets—including SpaceX’s rockets and Starlink satellites, the X social media platform, and xAI’s Grok chatbot—under one publicly traded company. SpaceX was last valued at $800 billion in a private transaction, while xAI reached a $230 billion valuation in November 2025, according to the Wall Street Journal. Neither company immediately responded to Reuters’ requests for comment.