The merger creates the world's most valuable private company, and paves the way for Musk to try and prove out the usefulness of space-based data centers.

TechCrunch (TC) is a leading technology news and media site that covers the latest trends, startups, and innovations in the tech industry. With breaking news,  analysis, and expert commentary, TechCrunch provides  insights into the world of technology and entrepreneurship. Developers can learn about emerging technologies, funding opportunities, and market trends by following TechCrunch's coverage of the tech industry.

TechCrunch

SpaceX has acquired xAI in a merger creating a $1.25 trillion private company, with plans to build space-based data centers to address AI's growing power demands. The deal combines xAI's AI capabilities (currently burning $1 billion monthly) with SpaceX's satellite launch infrastructure, creating a revenue loop where SpaceX launches data center satellites that must be replaced every five years. The merger follows xAI's previous acquisition of X (formerly Twitter) and comes ahead of SpaceX's planned June IPO, though the timeline remains uncertain.

Elon Musk’s SpaceX officially acquires Elon Musk’s xAI, with plan to build data centers in space

TechCrunch Founder Summit 2026: Tickets Live