SpaceX acquires xAI, valuation skyrockets to $1.25 trillion Elon Musk is fully integrating SpaceX, Starlink, xAI, and X, with the next stop being space computing dominance. Here are the three key details of this merger: 1. Capital restructuring: The deal is structured entirely in stock, with xAI and its holdings of the X platform fully merged into the SpaceX system. Post-merger, the entity’s valuation has soared to $1.25 trillion, with xAI contributing approximately $250 billion to the valuation, making it the global 'king of private companies.' 2. Starship + space data center tech vision: Musk predicts Earth’s electricity will eventually run out and has officially launched orbital computing. Using Starship’s payload capacity to deploy data centers in orbit, this move completely breaks the AI energy bottleneck, making space training costs lower than on Earth. 3. Paving the way for a 2026 IPO: Leveraging SpaceX’s powerful launch capabilities and Starlink’s cash flow to fund the costly AI research while also resolving X’s debt and profitability pressures.