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Reading: SpaceX acquires xAI as Musk pitches orbital information facilities forward of $1 trillion IPO
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SpaceX acquires xAI as Musk pitches orbital information facilities forward of $1 trillion IPO

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Last updated: February 3, 2026 2:49 am
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Published: February 3, 2026
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SpaceX acquires xAI as Musk pitches orbital information facilities forward of  trillion IPO


SpaceX has acquired xAI, Elon Musk’s synthetic intelligence startup, in accordance to an organization memo that frames the deal as an effort to mix rockets, satellite tv for pc web, direct-to-mobile connectivity, and AI right into a single vertically built-in platform.

Within the memo, Musk argues that AI scaling is constrained by the ability and cooling calls for of terrestrial information facilities and pitches area because the long-term answer. The plan contains orbital information facilities powered by near-constant photo voltaic power.

The memo describes utilizing Starship to elevate way more mass to orbit than present techniques, enabling a big satellite tv for pc buildout that would add important compute capability over time.

The announcement arrives as SpaceX explores a blockbuster public itemizing. A latest report cited by Reuters stated SpaceX has weighed a mid-June IPO that would elevate as much as $50 billion at roughly a $1.5 trillion valuation, although the corporate has not publicly confirmed the plan.

Separate reporting in latest days described merger discussions between SpaceX and xAI forward of a possible IPO, with some protection pegging a mixed valuation nearer to $1.25 trillion.

A associated Reuters report additionally highlighted a Starlink privateness coverage replace that will permit buyer information for use for coaching AI fashions except customers choose out, a change that would grow to be extra consequential as SpaceX and xAI combine techniques and information pipelines.

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Reading: SpaceX acquires xAI as Musk pitches orbital information facilities forward of $1 trillion IPO
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