Elon Musk Merges SpaceX and xAI Ahead of Expected IPO

Billionaire aims to dominate rocket and AI businesses with combined company

Published on Feb. 3, 2026

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Elon Musk is combining his space exploration company SpaceX and his artificial intelligence venture xAI into a single entity ahead of an expected major initial public offering later this year. The deal will bring together Musk's various tech offerings, including his AI chatbot Grok, satellite communications firm Starlink, and social media platform X.

Why it matters

Musk believes that by merging his space and AI businesses, he can accelerate the development of space-based AI systems, which he sees as the future of large-scale computing power. This move comes as Musk faces increasing competition in both the rocket and AI industries from rivals like Google and OpenAI.

The details

Under the deal, SpaceX will acquire xAI, which Musk founded in 2023 to compete with OpenAI's ChatGPT. Musk has said he believes the lowest-cost way to generate AI computing power will be in space within 2-3 years, citing the advantages of solar power and reduced resource constraints. The combined company will also include Musk's Starlink satellite internet service and his social media platform X, formerly known as Twitter.

  • Musk announced the deal on Monday, February 3, 2026.
  • Musk expects the combined company to go public later this year.

The players

Elon Musk

The billionaire entrepreneur who founded SpaceX, xAI, and other tech ventures, and is now merging his space and AI businesses.

SpaceX

Musk's rocket exploration company, which is acquiring xAI.

xAI

Musk's artificial intelligence company, which he founded in 2023 to compete with OpenAI's ChatGPT.

Starlink

Musk's satellite internet service, which will be part of the combined SpaceX-xAI company.

X

Musk's social media platform, formerly known as Twitter, which will also be part of the merged entity.

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What they’re saying

“In the long term, space-based AI is obviously the only way to scale. It's always sunny in space!”

— Elon Musk (SpaceX website)

“I'll be surprised if people move from land to low-Earth orbit.”

— Brad Smith, President, Microsoft (The Associated Press)

What’s next

Musk expects the combined SpaceX-xAI company to go public later this year in a highly anticipated initial public offering.

The takeaway

Musk's move to merge his space and AI businesses underscores his ambitious vision to dominate the future of computing and space exploration, as he seeks to overcome growing competition in both industries.