SpaceX and xAI signed a merger agreement creating a $1.25 trillion company on Jan. 31. The $1.25 trillion value assigned to the new SpaceX is a bet on Musk’s plan for the convergence of AI and space. Some investors in xAI became convinced Musk’s companies should be more intertwined, given the ties the AI firm already had established with them. However, some SpaceX investors believe xAI investors gained a larger stake in the combined company than they would have preferred. The transaction is handing xAI investors a roughly 20% stake in the combined company.

Source: Wall Street Journal February 06, 2026 16:36 UTC