SpaceX-xAI Merger at 1 Trillion: Details and Implications

Bloomberg reveals this week advanced discussions between SpaceX and xAI for a historic merger that could create an entity valued at nearly $1 trillion. If this operation materializes, it would mark the most spectacular union between two pillars of Elon Musk’s technological empire.

I have closely followed the evolution of these two companies since their respective beginnings, and this potential merger completely changes the game. It would radically transform the landscape of artificial intelligence and space exploration, creating a unique synergy between orbital infrastructures and computing power.

In this article, I break down Bloomberg’s revelations, analyze the strategy behind this consolidation, and examine the concrete implications for the technological and space sectors.

What Bloomberg Reveals About This Deal

Bloomberg News published this week information from anonymous sources close to the matter. According to these revelations, SpaceX and xAI are in advanced discussions, with a possible agreement in the coming days. However, no official confirmation has been provided by either company.

The figures discussed are staggering. xAI would be valued at approximately $200 billion, following its last fundraising round last September. For its part, SpaceX would reach a valuation of $800 billion as part of the preparation for a stock sale scheduled for the end of the year.

The envisioned mechanism would be based on a stock swap: xAI shareholders would receive SpaceX shares in exchange for their stakes. This structure strongly recalls the acquisition of SolarCity by Tesla in 2016, an operation that had already sparked debates and controversies.

A concrete detail reinforces the credibility of this information: two legal entities in Nevada were created on January 21, 2026, suggesting concrete administrative preparation. What strikes me about this operation is Elon Musk’s personal fortune, largely driven by xAI’s valuation, which could be profoundly restructured by this merger.

A Logical Consolidation in the Musk Ecosystem

Synergies Between Space and Artificial Intelligence

This merger is not a simple financial alignment, but a true, well-thought-out technological convergence. The Starlink infrastructure, with its thousands of satellites already in orbit, offers unique global connectivity. Combined with Grok, the artificial intelligence developed by xAI, it could create an unprecedented technological ecosystem.

The space and AI synergies are numerous. Computing power could be distributed between terrestrial data centers and orbital infrastructures. Solar energy captured in space, combined with the natural cooling of the space vacuum, represents a considerable competitive advantage over traditional data centers.

I observe that this strategy fits perfectly into Musk’s beloved vertical integration logic. Simultaneously controlling satellite connectivity, AI computing power, and launch infrastructures creates considerable barriers to entry for competitors.

Past Examples Informing This Strategy

This vertical consolidation approach characterizes all of Musk’s companies. The acquisition of SolarCity by Tesla in 2016 already aimed to create a complete energy ecosystem, from photovoltaic production to battery storage.

More recently, Tesla’s $2 billion investment in xAI already illustrated this desire to bring together the electric automotive industry and artificial intelligence. The merger between xAI and X (formerly Twitter) last year also allowed for the exploitation of social data to train Grok.

Discussions between Tesla and SpaceX have even been mentioned in the past, without ever materializing. This pattern shows a clear vision: to create closed ecosystems where each component strengthens the others, reducing dependence on external suppliers.

The Ambition for Space Data Centers Becomes Concrete

During the World Economic Forum in Davos, Musk publicly mentioned his project for space data centers. What seemed like science fiction is now taking a concrete turn with this potential merger.

The technical concept relies on several decisive advantages. Continuous solar energy, available 24 hours a day in orbit without nocturnal interruption, eliminates dependence on terrestrial electrical grids. Natural space cooling, thanks to the vacuum, eliminates the colossal air conditioning costs that represent up to 40% of a classic data center’s energy consumption.

Musk announced that this infrastructure could become economically competitive in 2 to 3 years. An ambitious timeline, but technically plausible given Starlink’s current capabilities.

The scale of the project is impressive: SpaceX has filed a regulatory request to deploy up to 1 million satellites. While this vision seems futuristic, the technical foundations already exist with the current Starlink constellation. Some analysts compare this project to a miniature “Dyson Swarm” – a theoretical concept of massive solar energy capture around a star, here applied on a more modest scale around Earth.

As an observer of the Tesla and SpaceX sectors, Musk’s vision for the future of SpaceX and Tesla in robotics fits into this same logic of interconnected infrastructures serving artificial intelligence.

Financial and Competitive Implications of This Merger

SpaceX is preparing for a historic IPO with a target valuation that could reach $1.5 trillion. This merger with xAI would considerably strengthen the attractiveness of this IPO, creating a unique industrial story combining space, AI, and telecommunications. An IPO that could become the largest in the history of financial markets.

Defense contracts constitute another strategic pillar. The U.S. Department of Defense has already awarded up to $200 million to xAI for military artificial intelligence projects. The combination of Starshield (the defense version of Starlink) and Grok positions the merged entity as a key player in the space-defense-AI market.

From a competitive standpoint, this complete vertical integration creates a unique advantage. Facing OpenAI and Microsoft in AI, and Blue Origin and ULA in space, the merged entity would have a value chain that no one else can replicate in the short term.

Several questions, however, remain open. The reactions of American and European antitrust authorities will be decisive. I remain attentive to Brussels’ positions, particularly concerning concentration in critical space infrastructures. The concrete terms for xAI and SpaceX shareholders – dilution or valuation – also determine the acceptance of this operation.

What strikes me about this operation is that it illustrates a profound transformation of technological capitalism. Beyond the staggering figures, it raises essential questions about the concentration of technological power, according to industry sources who are closely observing the evolution of these mega-consolidations in the digital economy.