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Elon Musk’s SpaceX buys Elon Musk’s xAI | Money News

The Owner Press by The Owner Press
February 3, 2026
in Newswire
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SpaceX has introduced it has acquired synthetic intelligence start-up xAI in a deal that that brings collectively two corporations owned by Elon Musk. 

In a press release, Mr Musk stated the deal would create “essentially the most formidable, vertically-integrated innovation engine on (and off) Earth, with AI, rockets, space-based web, direct-to-mobile machine communications and the world’s foremost real-time info and free speech platform”.

The world’s richest man, who additionally owns Tesla, social media platform X, and satellite tv for pc communications firm Starlink, stated the mixture would purpose to develop AI information centres in area, and referred to as the transfer “not simply the subsequent chapter, however the subsequent e book in SpaceX and xAI’s mission”.

X, previously Twitter, was itself purchased by xAI final 12 months. Mr Musk bought Twitter in 2022 for $44bn (£38bn).

A $1trn firm

Of the newest deal, Mr Musk wrote: “In the long run, space-based AI is clearly the one method to scale.

“The one logical answer due to this fact is to move these resource-intensive efforts to a location with huge energy and area. I imply, area known as ‘area’ for a cause.

“By instantly harnessing near-constant solar energy with little working or upkeep prices, these satellites will remodel our potential to scale compute.

“It is at all times sunny in area.”

The mixed firm would have a valuation of $1.25trn (£910bn), in keeping with Bloomberg, and the deal comes forward of SpaceX’s anticipated preliminary public providing, anticipated to be introduced later this 12 months.

SpaceX's mega rocket Starship blasts off for a test flight from Starbase, Texas, in October 2025. Pic: AP
Picture:
SpaceX’s mega rocket Starship blasts off for a take a look at flight from Starbase, Texas, in October 2025. Pic: AP

SpaceX will not be the one firm to discover the thought of placing AI information centres in area.

Google final 12 months revealed a brand new analysis venture referred to as Challenge Suncatcher that may equip solar-powered satellites with AI pc chips.

Mississippi officers final month introduced that xAI is ready to spend $20bn (£14.6bn) to construct an information centre close to the state’s border with Tennessee.

Learn extra from Sky Information:
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Trump to close Kennedy Center for two years

SpaceX‘s acquisition of xAI comes weeks after X got here beneath fireplace following complaints that customers had been utilizing the platform’s AI chatbot, Grok, to make sexualised pictures of actual ladies and kids

It prompted an investigation by the UK’s impartial on-line security watchdog, Ofcom, and calls from Prime Minister Sir Keir Starmer for the platform to adjust to UK legal guidelines “instantly”.

The corporate has since introduced the AI software will no longer be able to undress pictures of real people.

“We’ve carried out technological measures to forestall the Grok account from permitting the enhancing of pictures of actual individuals in revealing clothes resembling bikinis,” X beforehand stated in a press release.

“This restriction applies to all customers, together with paid subscribers.”



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