Musk Merges xAI and SpaceX into $1.25T Private Giant

I mean, space is called 'space' for a reason." The deal, which pulls together two of Musk's largest private ventures, values the combined entity at $1.25 trillion, making it the most valuable private company in the world, according to a report from Bloomberg. SpaceX was in the process of preparing to go public later this year before the xAI acquisition was announced. The space firm's plans for an initial public offering are still on, according to Bloomberg.

In December, SpaceX told employees that it would buy insider shares in a deal that would value the rocket company at $800 billion, according to The New York Times. Last month, xAI announced that it had raised $20 billion from investors, bringing the company's valuation to roughly $230 billion. This isn't the first time Musk has sought to consolidate parts of his vast business empire, which is largely privately owned and includes xAI, SpaceX, the brain interface company Neuralink, and the tunnel transportation firm the Boring Company.

Last year, xAI acquired Musk's social media platform, X, formerly known as Twitter, in a deal that valued the combined entity at more than $110 billion. Since then, xAI's core product, Grok, has become further integrated into the social media platform. Grok is featured prominently in various X features, and Musk has claimed the app's content-recommendation algorithm is powered by xAI's technology.

A decade ago, Musk also used shares of his electric car company Tesla to purchase SolarCity, a renewable energy firm that was run at the time by cousin Lyndon Rive. The xAI acquisition demonstrates how Musk can use his expansive network of companies to help power his own often grandiose visions of the future.