SpaceX to Merge with xAI Ahead of Planned $50B IPO

SpaceX (SPAX.PVT) will acquire xAI (XAAI.PVT) in a merger consolidating two of Elon Musk’s flagship private ventures, the company confirmed on February 2, 2026. Musk cited space-based AI and orbital data centers as key drivers, arguing terrestrial infrastructure cannot meet AI’s growing power demands. The combined entity aims to integrate AI, rockets, Starlink, and direct-to-device communications under one vertically integrated platform. Tesla recently invested $2 billion in xAI preferred stock and shares engineering resources across all three Musk-led companies. SpaceX is preparing an IPO that could raise up to $50 billion and value the firm at $1.5 trillion, though terms may shift post-merger. Bloomberg first reported the deal earlier Monday.