SpaceX Acquires xAI in Massive Merger – Elon Musk Combines Forces in Historic 2026 Deal

In one of the biggest corporate moves of the decade, SpaceX has acquired xAI in a deal announced February 3, 2026. Elon Musk confirmed the transaction on X, stating the two companies will merge into a single entity under the SpaceX umbrella — creating a powerhouse that combines world-leading rocket, satellite, and space infrastructure capabilities with cutting-edge artificial intelligence and large-scale compute.Deal Details (Confirmed & Leaked)Valuation: xAI valued at ~$45–$50 billion in the all-stock transaction (SpaceX valuation ~$350 billion pre-deal). Structure: xAI becomes a wholly-owned subsidiary of SpaceX; no cash changed hands — xAI shareholders receive SpaceX stock. Leadership: Elon Musk remains CEO of the combined company; xAI founder team (including ex-DeepMind, OpenAI, Google Brain talent) joins SpaceX’s AI division. Key assets moving to SpaceX: Grok models, Colossus (world’s largest AI training cluster, 100k+ H100 GPUs), xAI’s Memphis supercomputer campus, and proprietary AI research. Strategic RationaleStarlink + AI: xAI’s models will power next-gen Starlink routing, predictive maintenance, and customer support. Starship & Mars: Grok-like reasoning agents will assist autonomous navigation, mission planning, and real-time decision-making for Mars colonization. Compute Synergy: xAI’s massive GPU clusters will accelerate SpaceX simulations, trajectory optimization, and satellite constellation design. Defense & Government Contracts: Combined entity strengthens SpaceX’s position for classified AI + space projects with DoD, NASA, and intelligence agencies. Market & Industry ReactionSpaceX valuation reportedly jumped 15–20% in secondary markets post-announcement. Competitors (Blue Origin, OpenAI, Anthropic) expressed concern over the concentration of talent and compute power. Regulatory scrutiny expected — FTC and DOJ already reviewing for antitrust implications, especially given Musk’s control of X, Tesla, Neuralink, and now xAI under SpaceX. Elon Musk posted on X shortly after the announcement: “SpaceX + xAI = the fastest path to understanding the universe and making life multi-planetary. This is just the beginning.”At digital8hub.com, we track AI mergers, space industry news, Elon Musk ventures, tech consolidation, and more. For analysis of the deal’s antitrust risks, what it means for Grok users, or how it impacts the race to Mars, explore our business, tech trends, and space sections.The SpaceX-xAI merger isn’t just a deal — it’s the creation of a new kind of company: one that fuses AI superintelligence with interplanetary ambition. 2026 just got a lot more interesting.