Elon Musk's SpaceX Unites with xAI to Launch Trillion-Dollar AI Space Odyssey

Elon Musk's SpaceX has taken over AI firm xAI to form a trillion-dollar entity. The merger aims to innovate with AI data centers in space, powered by solar energy, despite EU concerns over AI ethics. An IPO is also planned, marking significant advancements in AI and space technology.


Devdiscourse News Desk | Updated: 03-02-2026 10:48 IST | Created: 03-02-2026 10:48 IST
Elon Musk's SpaceX Unites with xAI to Launch Trillion-Dollar AI Space Odyssey
Representative Image (Photo credit/SpaceX). Image Credit: ANI
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Elon Musk's space exploration venture, SpaceX, has acquired his artificial intelligence startup, xAI, according to an announcement by the billionaire entrepreneur. Details of the acquisition were shared on his social media platform, X.

The fusion of SpaceX and xAI, with a staggering valuation of USD 1.25 trillion, sets the stage for a planned Initial Public Offering later this year, noted Bloomberg. Previously, Musk had integrated xAI with his social media enterprise formerly known as Twitter.

Despite the excitement, xAI's lead product, Grok, is under EU investigation for potentially generating inappropriate images using AI. However, Musk envisions the merger as central to an 'innovation engine' merging AI, space, and media technologies.

Emphasizing future ambitions, SpaceX plans to place AI data centers in space, claiming solar power will significantly cut costs, revolutionizing AI model training. This venture aligns with SpaceX's strategy of leveraging operational models from its established satellite operations, aiming to enhance humanity's technological advances.

Moreover, SpaceX is seeking permission from the US Federal Communications Commission to deploy a satellite constellation, further solidifying its commitment to cosmic innovation.

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