Deal Structure and Valuation
According to people familiar with the matter, SpaceX has acquired xAI in an all-equity transaction. The agreement values SpaceX at around $1 trillion, while xAI is pegged at approximately $250 billion. Together, the merger creates a single integrated company spanning launch vehicles, satellite internet, advanced data infrastructure, and large-scale AI systems.
Musk has described the merger as essential for building massive data centres beyond Earth, arguing that space-based infrastructure could eventually overcome terrestrial energy and land constraints. While the idea remains ambitious, it underscores his belief that AI and space technology are inseparable in the next phase of innovation.
Impact on Elon Musk’s Net Worth
Until recently, Tesla was the primary source of Musk’s liquid wealth. The electric vehicle major, listed on global stock exchanges, has a market capitalisation of about $1.58 trillion, making it one of the world’s most valuable companies. However, Musk owns only around 13 per cent of Tesla.
By contrast, Musk holds an estimated 43 per cent stake in SpaceX. With the merger elevating SpaceX’s valuation and absorbing xAI into its structure, SpaceX now accounts for more than half of Musk’s paper wealth. As per real-time billionaire rankings, Musk’s net worth stands at approximately $852.5 billion, though much of it remains illiquid.
Tesla’s shares have seen a modest decline since the start of the year, while SpaceX’s private valuation has remained resilient. This divergence has further amplified the importance of SpaceX within Musk’s financial portfolio.
Why SpaceX Matters More Than Ever
SpaceX is already a dominant force in orbital launch services, with a steady pipeline of missions for NASA and the US Department of Defense. Its Starlink satellite internet business has also expanded rapidly, offering global broadband coverage and direct-to-mobile connectivity.
Industry watchers believe that the planned SpaceX initial public offering, expected later this year, could push valuations even higher. An IPO would not only unlock liquidity but also cement SpaceX’s position as the cornerstone of Musk’s wealth, eclipsing Tesla’s role for the first time.
Musk’s Vision Behind the Merger
In a statement published on SpaceX’s website, Musk said the merger would create “the most ambitious, vertically integrated innovation engine on and off Earth.” He pointed to combined capabilities in AI, rockets, space-based internet, and real-time information platforms.
Musk framed the acquisition of xAI as “not just the next chapter, but the next book” in SpaceX’s broader mission. His comments highlight a long-term ambition to fuse intelligence systems with space infrastructure, a strategy that could redefine both industries.
Broader Implications
The SpaceX-xAI merger reflects a broader shift in Musk’s priorities, away from consumer-facing products towards foundational technologies. For investors and policymakers alike, the deal raises questions about regulation, competition, and the growing concentration of technological power.
From an Indian perspective, the development is being closely watched by the space and technology community, especially as India accelerates its own private space sector under policy frameworks outlined by the government.
