Elon Musk merged SpaceX and xAI into a single entity, creating what he called "the most ambitious, vertically-integrated innovation engine on (and off) Earth," according to an announcement from Musk reported by The Verge on February 2, 2026. The combined company is valued at $1.25 trillion, making it the world’s most valuable private company, Wired reported.
The merger aims to integrate AI, rockets, space-based internet, direct-to-mobile device communications, and a real-time information platform, according to SpaceX's statement reported by Ars Technica. Musk stated the move was necessary because global electricity demand for AI cannot be met with terrestrial solutions, and space-based AI is the only way to scale, Wired reported. "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," Musk wrote in a blog post, according to Wired.
SpaceX plans to launch a massive satellite constellation to power the new entity, Ars Technica reported. The company said the merger marks "not just the next chapter, but the next book in SpaceX and xAIs mission: scaling to make a sentient sun to understand the Universe and extend the light of consciousness to the stars!" according to Ars Technica.
The merger comes at a time when Musk's past is under scrutiny. The Verge reported that the release of documents related to Jeffrey Epstein, revealing that Musk sought an invitation to Epstein's island, adds risk to his plans to take the combined company public.
In related news, Ukraine and SpaceX have collaborated to combat the use of Starlink by Russian drones, Ars Technica reported. Ukraine will soon require users to register their Starlink terminals to get on a whitelist, and unregistered terminals will be disconnected, according to the Ukraine Ministry of Defense, as reported by Ars Technica. Ukraine Minister of Defense Mykhailo Fedorov emphasized that the only technical solution to counter this threat is to block all unregistered use of Starlink terminals, according to Ars Technica.
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