tech
February 3, 2026
Elon Musk merges SpaceX with xAI (and X)
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TL;DR
- SpaceX has acquired xAI, merging them into a single entity to create an "everything app" combining AI, rockets, space-based internet, and X (formerly Twitter).
- Elon Musk stated that space-based AI is the only viable long-term solution due to the immense power and cooling requirements of terrestrial data centers.
- Musk estimates that within 2-3 years, space-based AI compute will be the most cost-effective option, accelerating breakthroughs.
- The merger follows SpaceX's FCC filing for a 1-million satellite constellation and integrates X, which is under EU investigation for deepfakes generated by Grok.
- The combined company has a valuation of $1.25 trillion, with SpaceX planning an IPO and having reported $8 billion in profit last year.
- Tesla disclosed a $2 billion investment in xAI.
- The ultimate goal includes enabling self-growing bases on the Moon, establishing a civilization on Mars, and expanding into the Universe.
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