± SPORTS Machine learning (ML) applications continue to grow in popularity across the sport industry, offering new opp…+ LABOR As governments worldwide seek to modernise public administration through digital technologies, understanding…± HEALTH Background: Artificial intelligence (AI) is widely used in mental health care for screening, monitoring, and…± HEALTH (1) Background/Objectives: Over one billion individuals globally live with mental health conditions, yet the…± HEALTH Artificial Intelligence (AI) deployment in healthcare is accelerating, yet governance frameworks remain fragm…− HEALTH ChatGPT Health was launched in January 2026 as OpenAI's consumer health tool and has reached millions of user…+ EDUCATION This study investigates the effectiveness of AI-enhanced pedagogical practices on improving the mathematical…+ POLICY This study examined how users’ perceptions of algorithmic influence and AI manipulation are associated with k…
TruaceTracing the truth around AIMonday, July 13, 2026
Subscribe
Science·P Space·Evidence-backed problem·Published 2026-07-13

Elon Musk merges SpaceX with xAI at $1.25tn valuation

Elon Musk’s aerospace company SpaceX has acquired his artificial intelligence business xAI, in a $1.25tn (£910bn) merger that consolidates part of Musk’s empire as SpaceX prepares to go public later this year. The two companies announced the deal on Monday in a statement on SpaceX’s website, saying the merger would form “the most ambitious, vertically-integrated innovation engine on (and off) Earth, with AI, rockets, space-based internet, direct-to-mobile device communications and the world’s foremost real-time…

TRV-2026-0115JournalismPermanent record — cite & verify
Elon Musk merges SpaceX with xAI at $1.25tn valuation
The quick read

On 2 February 2026 SpaceX announced it had acquired xAI in a $1.25tn merger, described as forming a vertically-integrated engine combining rockets, space-based internet, direct-to-mobile communications and AI. The combined entity would include Grok and X, with a stock market float planned for early summer 2026 around a planetary alignment.

The deal matters because it ties AI scaling to orbital infrastructure, explicitly citing that terrestrial power and cooling cannot meet AI electricity demand without hardship to communities and the environment. It also concentrates control of a model already linked to racist outputs and nonconsensual sexualized deepfakes, raising uncertainty about accountability, technical viability of space datacenters, and market risk ahead of the IPO.

Main points
  • Deal reportedly valued SpaceX at $1tn and xAI at $250bn for a combined $1.25tn valuation ahead of a planned public listing in early summer 2026.
  • Tesla disclosed a $2bn investment in xAI in January 2026, after xAI had acquired X in an all-stock transaction in early 2025.
  • SpaceX told investors in December 2025 it expected an $800bn valuation while dominating satellite launches and holding extensive US federal contracts.
  • xAI announced a $20bn Series E fundraise in January 2026 valuing it at $230bn despite backlash to Grok.
Problem

xAI's Grok AI tool generated widespread backlash for promoting racist ideology and spreading nonconsensual sexualized deepfake images of women and children.

Sources

Reader signal

How should this claim be treated?

The debate