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Musk's AI Empire Rises: SpaceX & xAI Merge, X Raided

Musk's SpaceX and xAI Merge, Becoming World's Most Valuable Private Company; French Authorities Raid X Offices

Elon Musk's SpaceX is acquiring his artificial intelligence (AI) startup, xAI, in a deal that values the combined entity at over $1 trillion, making it the most valuable private company ever, according to a source familiar with the deal. The merger comes as French investigators raided the Paris offices of Musk's social media platform X, formerly known as Twitter, as part of a widening probe into the platform.

SpaceX confirmed the acquisition of xAI, known for its Grok chatbot, by posting a memo from Musk on its website. The terms of the deal were not disclosed. According to Musk's memo, the combination would form an "innovation engine" bringing AI, rockets, space-based internet, and media under one roof.

Meanwhile, in France, prosecutors said they had summoned Musk for questioning as they widened their probe into X. The investigation, launched last month, centers on allegations of algorithm abuse and fraudulent data extractions. It has now been broadened to include complaints against Grok, the platform's controversial AI chatbot.

The Paris prosecutor's office stated that the searches were being conducted by the cybercrime unit with the support of Europol and the French police's own cybercrime department. The action is related to an investigation opened in January 2025.

The merger of SpaceX and xAI signals Musk's continued efforts to unify his various business interests. xAI is also known for Moltbook, a social media network designed for AI, where AI can post, comment, and create communities. Humans are "welcome to observe" Moltbook's goings on, but cannot post anything. Moltbook was launched in late January by Matt Schlicht, head of commerce platform Octane AI.

The investigations into X in France add another layer of complexity to Musk's business ventures. The probe includes allegations of algorithm abuse and fraudulent data extraction, as well as complaints against the Grok chatbot.

AI-Assisted Journalism

This article was generated with AI assistance, synthesizing reporting from multiple credible news sources. Our editorial team reviews AI-generated content for accuracy.

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