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SpaceX Acquires xAI as Musk Pitches Orbiting AI Data Centers

Musk says space-based compute will relieve power and cooling constraints Earth cannot meet.

Overview

  • SpaceX confirmed the takeover on Feb. 2, folding xAI and its Grok chatbot into the rocket and satellite company.
  • The company cites a plan for orbital data centers and has sought FCC approval to launch up to one million solar-powered, optically linked compute satellites.
  • Media reports place the combined valuation near $1.25 trillion and tie the move to a potential 2026 IPO, with shares reportedly priced around $526 each.
  • The merger also brings social platform X under SpaceX’s umbrella and could involve exchanging xAI shares for SpaceX stock, according to prior reporting.
  • Regulators and investors are expected to review governance and national-security issues and consider ongoing probes into Grok’s harmful outputs, while specific deal terms were not disclosed.