Overview
- SpaceX confirmed on Feb. 2 that it acquired xAI, with reporting indicating xAI will operate as a wholly owned subsidiary under SpaceX.
- The consolidation also brings X and the Grok chatbot under SpaceX after xAI’s prior share-swap purchase of the social platform.
- Bloomberg reports a combined valuation near $1.25 trillion with expected share pricing around $526, while IPO timing and terms remain unfiled and reported rather than disclosed.
- SpaceX recently sought FCC approval to deploy up to one million satellites configured as orbital data-center platforms, and Musk says space-based compute could become cheapest within two to three years.
- Coverage highlights xAI’s heavy cash burn—reported at roughly $1 billion per month and $9.5 billion in the first nine months of 2025—and flags potential regulatory and national-security scrutiny given SpaceX’s federal contracts and governance questions.