Musk Merges SpaceX and xAI, Creating Trillion-Dollar Tech Giant
Elon Musk merged SpaceX and xAI, creating a combined entity valued at $1.25 trillion, making it the most valuable private company in the world, according to a report from Wired. The announcement, made on Monday, February 2, 2026, consolidates Musk's ventures in space exploration, artificial intelligence, and social media under one umbrella.
According to Musk, the acquisition of xAI by SpaceX aims to create "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 information and free speech platform," as stated in an announcement.
Musk justified the merger by citing the growing demand for electricity to power AI, arguing that terrestrial solutions would be insufficient. "In the long term, space-based AI is obviously the only way to scale," Musk wrote in a blog post. "The only logical solution therefore is to transport these resource-intensive efforts to a location with vast power and space. I mean, space is called space for a reason."
In other news, Waymo announced a $16 billion investment round aimed at expanding its robotaxi business to more US cities and overseas markets, according to The Verge. The funding round was led by Dragoneer Investment Group. Waymo's co-CEOs said they would use some of the money to buy more vehicles to grow its fleets.
Meanwhile, the Department of Justice released approximately 3.5 million pages of files related to Jeffrey Epstein, as mandated by the Epstein Files Transparency Act of November 19, 2025, Wired reported. The files revealed connections between Epstein and various figures in the Silicon Valley billionaire set, including Bill Gates and Elon Musk.
Also, since March 2025, the Department of Health and Human Services (HHS) has been utilizing AI tools from Palantir to screen and audit grants, grant applications, and job descriptions for noncompliance with President Donald Trump's executive orders targeting gender ideology and anything related to diversity, equity, and inclusion (DEI), according to Wired.
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