SpaceX acquires xAI in Elon Musk deal valuing combined firm at USD 1.25 trillion

Elon Musk’s space firm SpaceX has acquired xAI, an artificial intelligence start-up also owned by Musk, in a tie-up which values the combined company at $1.25 trillion, cementing its standing as the most valuable private company in the world.

The deal values SpaceX at $1 trillion and xAI at $250 billion, according to investor Ross Gerber, a shareholder in the privately held xAI who received merger documents on Monday. Last year, Musk’s social media company X — which he purchased for $44 billion in 2022, when it was known as Twitter — was acquired by xAI in an all-stock deal.