Elon Musk’s SpaceX Buys xAI, Merging Ambitious Ventures

SpaceX has acquired xAI, the companies announced, merging two of Elon Musk’s most ambitious ventures into what is now the world’s most valuable private company, Chris Isidore and Clare Duffy reported for CNN.

The merger may signal the scale of funding xAI requires to compete in the rapidly expanding artificial intelligence sector. (Photo: SpaceX) 

“This marks not just the next chapter, but the next book in SpaceX and xAI’s mission,” Musk said in a statement posted on SpaceX’s website.

The merger may signal the scale of funding xAI requires to compete in the rapidly expanding artificial intelligence sector, as well as AI’s growing role in the future of space exploration.

SpaceX was valued at $800 billion following a secondary share sale in December 2025, while xAI was valued at $230 billion in its most recent funding round in January, according to PitchBook.

The deal also highlights the scramble among major technology players — including Musk’s companies — to secure vast computing resources to power AI development, Lisa Eadicicco, Hadas Gold, Jackie Wattles, and Matt Egan also reported for CNN.