Elon Musk has now merged his AI startup SpaceX xAI. This means that now the work of building and running AI models and in the future, the work of data centers will be done in one place with SpaceX.
Some reports called it an acquisition, some a merger, but the meaning of all is this – Elon Musk wants that the work of AI computers should not only be done on the ground, but also in space.
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A Deal Designed Around Compute, Not Just Corporates
Strategy behind Elon Musk plan is called vertical integration. SpaceX controls rocket launches and satellites, and SpaceX xAI brings AI models and business pressure to acquire more and more complex compute resources.
One idea is “data centers in space” that is, placing computers and servers in space. This idea is gaining traction among those around Musk, as electricity and space on the ground for AI are becoming scarce.
The report doesn’t provide exact timelines, but the point is clear: computer and AI work is not just a business; it is now of industrial and global importance. Musk wants to create his own options, not just depend on normal companies.
Elon Musk IPO Chatter Amid Valuation Tug-Of-War
People are saying that after the merger of SpaceX and xAI, both companies could go on the stock market in the future. One report says they could be valued at $1.5 trillion, and another at $1.25 trillion.
Investors will have to look not only at SpaceX’s rockets and satellites, but also at xAI’s AI models and their ability to compete in the market.
Now money is being invested in things like power, computer chips, and data centers, which previously people invested in apps.
Why This Matters
Most important thing for crypto markets right now is not tokens, but computers and electricity. If AI projects continue to invest money in data centers, this will impact electricity prices and the hardware of large computers.
The key point is that in the future, the most valuable companies will be those that control important things—like power, chips, land, and perhaps rockets rather than just renting them. Crypto companies will also be judged accordingly.
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People Also Ask – SpaceX xAI:
What was the deal?
SpaceX acquired xAI through a stock swap; this news came on February 2, 2026.
Why did Elon Musk act now?
Musk said that the power and cooling limits for AI data centers on land are too high.
What is the combined value?
Approximately $1.25 trillion – SpaceX $1 trillion and xAI $250 billion.
What will be the impact on the work of Grok and xAI?
xAI’s name will not change for now, and Grok will remain active. It may be integrated into SpaceX’s tools in the future.
Is this AI for building in space?
Yes, Musk says that space-based AI computers will be the cheapest option in 2-3 years, because there is unlimited solar power there and there is no problem of cooling.
