WASHINGTON (dpa-AFX) - In a strategic move, entrepreneur Elon Musk has merged his artificial intelligence startup xAI into SpaceX, two of his most ambitious ventures. This combination has created what is now believed to be the world's most valuable private company.
SpaceX, the space technology company, has officially confirmed the acquisition on its website, sharing a memo from Musk that outlines his vision for the merged entity.
While the financial terms were not officially disclosed, a source familiar with the deal stated that xAI was valued at $125 billion, and SpaceX was valued at $1 trillion. This valuation makes the combined company the most valuable private firm ever.
Musk explained that the merger would form an 'innovation engine' by uniting AI, rockets, satellite internet, and media under one roof. xAI, known for its Grok chatbot, originated as part of X after Musk acquired the platform in 2022. It was then spun out as an independent company in 2025, attracting strong investor interest.
However, Grok has also faced scrutiny, with European and UK regulators investigating concerns over its image-generation features.
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