By Maxwell Zeff
Publication Date: 2026-02-02 23:07:00
Elon Musk’s rocket and the satellite company SpaceX is taking over his AI startup xAI, the hundred billionaire announced on Monday. In a blog post, Musk said the acquisition was justified because the world’s power needs for AI cannot be met with “terrestrial solutions” and Silicon Valley will soon need to build data centers in space to advance its AI ambitions.
“In the long term, space-based AI is obviously the only way to scale,” Musk wrote. “The only logical solution, therefore, is to move these resource-intensive efforts to a place of enormous power and space. I mean, space is called ‘space’ for a reason.”
The deal, which brings together two of Musk’s largest private companies, values the combined company at $1.25 trillion, making it the most valuable private company in the world, according to a report by Bloomberg.
SpaceX was preparing to go public later this year before the xAI acquisition was announced. The space company’s plans for a first…
