SpaceX acquires xAI

Background

xAI had last been valued at $230 billion in November 2025, when SpaceX was valued at $800 billion in an insider share sale^[1]. Earlier, xAI had been combined with X, the social network, under X.AI Holdings Corp.^[3]

What happened

On 2 February 2026 SpaceX acquired xAI in an all-stock deal, making xAI a wholly owned subsidiary^[1][3]. Each xAI share was exchanged for 0.1433 SpaceX shares^[1].

Key details

The transaction valued SpaceX at about $1 trillion and xAI at about $250 billion. A memo to employees put the combined company at $1.25 trillion^[1][2].

LSEG data showed the deal to be the largest merger or acquisition on record^[1].

SpaceX went public in June 2026. The AI unit was rebranded SpaceXAI in July 2026^[3][4]. In October 2026 Musk said it would be renamed SpaceXSI^[3][4].

Impact

The acquisition made xAI a wholly owned subsidiary of SpaceX. Reuters reported that the deal came as Musk looked to unify AI and space ambitions^[1]. The AI unit was renamed SpaceXAI in July 2026, and in October 2026 Musk said it would become SpaceXSI^[3][4].

For readers, an all-stock deal is paid in the buyer's shares rather than cash. At the exchange ratio of 0.1433 SpaceX shares per xAI share, a holder of 1,000 xAI shares would receive 143.3 SpaceX shares^[1]. A wholly owned subsidiary is a company whose entire share capital belongs to its parent^[1][3]. The valuation figures are reported in the press and in a company memo, so they describe the deal as the parties presented it^[1][2]. The timeline runs from the November 2025 valuations through the February 2026 deal, the June 2026 listing and the naming changes in July and October 2026^[1][3][4]. The main points are the price of the deal, the share exchange ratio, the size LSEG data assigned to it, and the later public listing and renaming^[1][3][4].