Elon Musk SpaceX xAI merger, Elon Musk net worth 2026, SpaceX xAI

Elon Musk announced a blockbuster merger between SpaceX and xAI on February 2, 2026, creating the world's most valuable private company at $1.25 trillion. This SpaceX xAI merger integrates rockets, satellite internet, and AI to pioneer space-based data centers, potentially supercharging Musk's empire ahead of a massive IPO.

Elon Musk's Mega Merger Details

SpaceX, valued at around $1 trillion pre-merger, acquired xAI at a $250 billion valuation. SpaceX investors receive 80% of the combined entity, with xAI owners getting 20%, streamlining control under Musk who holds majority stakes in both. The deal, confirmed via Musk's memo on SpaceX's site, marks the largest merger ever and follows xAI's prior integration with X (formerly Twitter). (source)

Strategic Rationale

Musk envisions orbital data centers to overcome earthly limits on AI power and cooling, calling space "the only path to scale" AI. This vertically integrates SpaceX's Starlink broadband, rockets, and xAI's Grok chatbot for real-time AI in space, amid Tesla's recent $2 billion xAI investment. Critics question business logic, but it positions the entity for a summer IPO targeting over $1.5 trillion valuation.

Elon Musk's Net Worth Impact

Pre-merger, Musk's 42% SpaceX stake was worth ~$336-420 billion (at $800B-$1T valuation), plus 49% of xAI (~$122 billion at $250B). Post-merger, his ~43% in the $1.25T entity equates to $542 billion from this asset alone, pushing total net worth past $800 billion. This surge cements SpaceX as Musk's top holding, outpacing Tesla, with IPO liquidity potentially adding billions more.