SpaceX Acquires xAI in $1.25 Trillion Merger

SpaceX’s acquisition of xAI on February 2, 2026, created a new entity described as the most valuable private company worldwide by documented valuation figures.

The transaction brought together SpaceX, previously valued at around $1 trillion, and xAI, which had an estimated value of $250 billion before the merger. This consolidation also included xAI’s subsidiary, the social media platform X, under the SpaceX corporate structure.

According to company statements, Elon Musk said the merger was intended to support the development of space-based data centers powered by solar energy. The aim, as stated, is to address the growing energy requirements of artificial intelligence in a more sustainable manner.

Prior to the SpaceX acquisition, xAI had completed its own major transaction in March 2025 by acquiring the social media platform X. That earlier deal was structured as an all-stock transaction, valuing X at $33 billion, or $45 billion when including $12 billion in debt, and xAI at $80 billion at that time.

What the numbers show

• The combined SpaceX and xAI entity is valued at about $1.25 trillion
• SpaceX’s standalone valuation before the merger was estimated at $1 trillion
• xAI’s valuation prior to acquisition was around $250 billion
• xAI acquired X in March 2025 for $33 billion in stock, or $45 billion with debt included

With the completion of the acquisition, xAI and the social media platform X now operate as part of SpaceX. This structural change brings all three entities under a single corporate umbrella.

The merger’s stated purpose, according to Elon Musk, is to facilitate the deployment of solar-powered data centers in space. This approach is described as a way to meet the increasing energy needs of artificial intelligence technologies.

Industry sources documented that the combined valuation of the new entity places it at the forefront of privately held companies by market value. The merger is noted for its scale, bringing together major assets in aerospace, artificial intelligence, and social media.

Before the 2026 merger, xAI’s acquisition of X in 2025 represented a substantial transaction in the technology sector, with the inclusion of debt raising the total value of that deal. These sequential acquisitions have resulted in a consolidated corporate structure led by SpaceX.

* This article is based on publicly available information at the time of writing.