04 Feb 2026 - 09:01
The Kabul Tribune (KT) - American billionaire Elon Musk’s rocket company SpaceX has acquired his artificial intelligence startup xAI in a deal valuing the combined businesses at $1.25 trillion, CNBC reported.
According to CNBC, the transaction is the largest merger ever, with SpaceX valued at $1 trillion and xAI at $250 billion. Musk announced the deal in a blog post, saying the merger aims to create a vertically integrated platform combining AI, rockets, satellite internet, and the X social media platform, with a focus on building orbital data centers.
The deal comes as SpaceX prepares for a highly anticipated initial public offering (IPO) later this year or in 2026. CNBC reported that the merger will also provide additional capital to xAI, which develops the Grok chatbot and is investing heavily to compete with rivals such as OpenAI and Anthropic.
CNBC said the merger is structured as a share exchange, with xAI shares converted into SpaceX stock. SpaceX, best known for its Starlink satellite internet service, also holds major contracts with NASA and the US Department of Defense.
