SpaceX Acquires xAI to Pursue Orbital AI Data Centers
SpaceX said it acquired xAI and plans orbital data centers; Bloomberg reported the combined company is valued at $1.25 trillion.
Overview
SpaceX announced in a memo posted on its website that it has acquired xAI to combine Grok, the X social platform and Starlink and to pursue space-based data centers.
Bloomberg reported the combined company is valued at $1.25 trillion, a figure neither company confirmed, which would make it the world’s most valuable private firm.
Elon Musk wrote in the SpaceX memo that he expects orbital compute to become the lowest-cost way to run AI within two to three years, according to the memo.
SpaceX filed with the Federal Communications Commission seeking permission to deploy as many as 1 million satellites to operate as 'orbital data centers,' according to the FCC filing.
Mississippi officials announced xAI plans to spend $20 billion on a data center near the Tennessee border, according to state officials.
Analysis
Center-leaning sources report this neutrally: they avoid loaded language, present Musk’s assertions as source content (e.g., his SpaceX website claim about space-based AI) while also including skeptical outside perspectives (Brad Smith), competitive context (Google’s Project Suncatcher), and financial/historical details (investors, past mergers).
Sources (12)
FAQ
Bloomberg reported the combined company is valued at $1.25 trillion, though neither company has confirmed this figure.
The acquisition integrates xAI’s Grok AI, X platform, and compute expertise with SpaceX’s rockets, Starlink, and plans for orbital data centers to enable low-cost space-based AI computing.
Elon Musk expects orbital compute to become the lowest-cost way to run AI within two to three years, with SpaceX filing for FCC permission to deploy up to 1 million satellites as orbital data centers.
xAI acquired X (formerly Twitter) last year and plans a $20 billion data center in Mississippi near the Tennessee border.
SpaceX officially announced the acquisition on February 2, 2026, via a memo and blog post on its website, confirming earlier rumors.
History
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