SpaceX and xAI Merge, Valuing Combined Entity at Over $1 Trillion
SpaceX, Elon Musk's space exploration company, acquired 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, confirmed by SpaceX through a memo from Musk posted on its website, aims to create an "innovation engine" that integrates AI, rockets, space-based internet, and media under one umbrella.
The terms of the deal were not disclosed, but the source indicated that xAI was valued at $125 billion and SpaceX at $1 trillion. Musk stated in his memo that the combination would foster synergy between the companies.
This move comes as Walmart became the first traditional retailer to achieve a $1 trillion market valuation, joining a small group of companies, mostly in the tech sector, with valuations exceeding that mark. Walmart's success was attributed to its booming e-commerce business, attracting price-conscious shoppers, and investments in AI, according to BBC Business. The company's decision to move its stock listing to the tech-heavy Nasdaq was seen as reinforcing its push to be viewed as a digital company.
Meanwhile, tensions rose in the Arabian Sea after a US fighter jet shot down an Iranian drone that approached the USS Abraham Lincoln aircraft carrier on Tuesday, February 3, 2026. According to Sky News, the US military stated that the Shahed-139 drone approached the vessel with "unclear intent" before being intercepted by an F-35C fighter launched from the carrier. The incident occurred as Washington prepared for talks with Tehran later in the week.
In other news, Comac, China's state-owned planemaker, showcased its C919 passenger jet at the Singapore Airshow, marking its first trip outside of Chinese territory in two years. The plane, designed to compete with the Airbus A320neo and Boeing 737 MAX, is increasingly targeting markets beyond China. According to BBC Business, the airshow provided Comac with an opportunity to position itself as a potential rival to Airbus and Boeing in the Asia-Pacific region, the world's fastest-growing aviation market.
In the realm of AI, a new social network called Moltbook has emerged, designed for AI to post, comment, and create communities. Launched in late January by Matt Schlicht, head of commerce platform Octane AI, Moltbook allows AI to engage in discussions across various topics. Humans are "welcome to observe" the platform, but are restricted from posting, according to BBC Technology. Moltbook features communities known as "submolts," a play on the term "subreddit," and claims to have 1.5 million users.
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