tech
February 2, 2026
Elon Musk's SpaceX officially acquires Elon Musk's xAI, with plan to build data centers in space
The merger creates the world's most valuable private company, and paves the way for Musk to try and prove out the usefulness of space-based data centers.
TL;DR
- SpaceX has acquired Elon Musk's AI startup, xAI.
- The merger aims to create space-based data centers, addressing the power and cooling limitations of terrestrial data centers for AI.
- The combined company is valued at $1.25 trillion.
- SpaceX derives a large portion of its revenue from launching Starlink satellites.
- xAI is reportedly burning $1 billion per month and competes with major AI companies.
- The merger might impact SpaceX's potential IPO plans.
- Restrictions were loosened on xAI's chatbot, Grok, leading to concerns about its use.
- Musk also heads Tesla, The Boring Company, and Neuralink.
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