Musk's SpaceX to merge with xAI at combined valuation of $1.25 trillion, Bloomberg News reports

• The combined entity is expected to go public later in 2026 with a valuation likely exceeding $1 trillion
• SpaceX was valued at $800 billion in its most recent private funding round before the merger announcement
• The merger consolidates multiple Musk ventures including space operations, satellite internet, social media, and artificial intelligence capabilities

Summary: Musk's SpaceX-xAI Merger at $1.25 Trillion Valuation

Key Transaction Details:

Elon Musk plans to merge SpaceX with artificial intelligence startup xAI ahead of a planned IPO, creating a combined entity valued at $1.25 trillion, according to Bloomberg News sources. The deal was announced via internal memo on February 2, 2026.

Companies and Assets Involved:

The merger consolidates multiple Musk ventures under one roof, including:

• SpaceX rockets and operations
• Starlink satellite internet service
• X social media platform
• Grok AI chatbot (xAI's product)

Valuation Context:

SpaceX currently stands as the world's most valuable private company at $800 billion based on recent private transactions. The combined $1.25 trillion valuation ahead of the IPO represents significant premium growth and would likely exceed $1 trillion at public market pricing.

Market Implications:

This consolidation creates an unprecedented technology conglomerate spanning aerospace, satellite communications, social media, and artificial intelligence. The merger streamlines Musk's empire before public market scrutiny and potentially enhances synergies between space infrastructure and AI development. The IPO, planned for later in 2026, would represent one of the largest public offerings in history.

Status:

Neither SpaceX nor xAI immediately responded to Reuters' requests for comment. Reuters had previously reported on Thursday that discussions were underway regarding the merger ahead of the blockbuster public offering.

The deal positions Musk to leverage integrated capabilities across multiple high-growth technology sectors while preparing for increased regulatory and shareholder oversight post-IPO.