SpaceX and xAI Merger Forms $1.25 Trillion Technology Group

SpaceX’s acquisition of xAI in early 2026 created a combined entity valued at over $1 trillion, bringing together advanced space, artificial intelligence, and communications assets under one group.

The merger integrated SpaceX’s launch operations and Starlink broadband network with xAI’s artificial intelligence initiatives, including large language models and supercomputing projects. The transaction also consolidated control of the social media platform X, which xAI had acquired in 2025, into the new structure.

According to company statements, SpaceX plans to use its Starship rockets to deploy orbital data centers powered by solar energy. These data centers are intended to run AI computing, with the company estimating this approach could become the lowest-cost method for AI processing within several years.

One of the stated reasons for the merger is to address energy and cooling constraints faced by terrestrial data centers. The company indicated that relocating AI infrastructure into space could help overcome these limitations by leveraging solar power and the space environment.

What the numbers show

• SpaceX was valued at about $1 trillion and xAI at $250 billion at the time of the merger
• xAI spent around $13 billion in the year before the merger, while SpaceX reported $8 billion in profit on $15–16 billion in revenue
• Tesla invested $2 billion in xAI and now holds about 0.2% of the merged entity
• EchoStar’s 2–3% stake in SpaceX was valued at $11 billion before the merger, with potential to rise to $37.5 billion
• Elon Musk’s net worth reached approximately $800 billion following the merger

Financial ties between the companies existed before the merger, with SpaceX having previously invested $2 billion in xAI. This financial relationship deepened as the two firms combined their operations and assets.

EchoStar, which held a minority stake in SpaceX, experienced a decline in its share price after the merger was announced. The increased valuation of the merged group could raise the value of EchoStar’s stake, according to public filings.

Tesla, which invested $2 billion in xAI prior to the merger, now owns a small percentage of the combined SpaceX-xAI entity. This investment reflects the interconnected financial relationships among the companies involved in the transaction.

The merger resulted in a group that combines launch services, satellite broadband, artificial intelligence, and social media platforms. The combined operations are positioned to pursue projects such as space-based data centers and large-scale AI computing infrastructure.

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