SpaceX Acquires xAI in Record Transaction Valuing Space Firm at One Trillion Dollars

Elon Musk elon muskannounced on Tuesday that SpaceX has completed the acquisition of his artificial-intelligence startup xAI. According to a person familiar with the matter, the transaction values SpaceX at $1 trillion and xAI at $250 billion. This strategic merger represents the largest M&A deal ever reported by value, marking a significant consolidation of interests across the United States USand the global technology sector.

Under the terms of the agreement, investors in xAI will receive 0.1433 shares of SpaceX for every share of xAI they hold. While the transaction is structured primarily as a share-swap, some xAI executives may opt for cash instead of SpaceX stock at a price of $75.46 per share. The combined company of SpaceX and xAI is expected to price its shares at approximately $527 each. These valuations follow a period of rapid growth where SpaceX was last valued at $800 billion in an insider share sale, and xAI, the maker of the Grok chatbot, was valued at $230 billion in November.