Elon Musk merges xAI into SpaceX in record-setting deal
Elon Musk said on Monday that SpaceX has acquired his artificial-intelligence start-up xAI in a record-setting deal that unifies Musk’s AI and space ambitions by combining the rocket-and-satellite company with the maker of the Grok chatbot.
The deal, first reported by Reuters last week, represents one of the most ambitious tie-ups in the technology sector yet, combining a space-and-defence contractor with a fast-growing AI developer whose costs are largely driven by chips, data centres and energy.
It could also bolster SpaceX’s data-centre ambitions as Musk competes with rivals like Alphabet’s Google, Meta, Amazon-backed Anthropic and OpenAI in the AI sector.
The transaction values SpaceX at US$1 trillion, and xAI at US$250 billion, according to a person familiar with the matter.
“This marks not just the next chapter, but the next book in SpaceX and xAI’s mission: scaling to make a sentient sun to understand the Universe and extend the light of consciousness to the stars!” Musk said.
The purchase of xAI sets a record for the world’s largest M&A deal, a distinction held for more than 25 years when Vodafone bought Germany’s Mannesmann in a hostile takeover valued at US$203 billion in 2000, according to data compiled by LSEG.