India, Feb. 3 -- Elon Musk confirmed on Monday, 2 February 2026, that his aerospace company, SpaceX, has acquired his artificial intelligence startup, xAI. The transaction merges two of the world's most valuable private companies into a single entity ahead of a planned initial public offering (IPO) later this year.

The deal values the combined company at approximately USD 1.25 trillion. Before the merger, SpaceX held a valuation of roughly USD 800 billion following a secondary share sale in late 2025. xAI reached a USD 230 billion valuation in January 2026 after raising USD 20 billion in Series E funding.

According to reports from Reuters, xAI investors will receive 0.1433 shares of SpaceX for every share of xAI they hold. Some xAI exec...