Elon Musk bets on a SpaceX–xAI fusion in a $1.25 trillion, space-powered AI push

Elon Musk is merging SpaceX with his AI startup xAI in a deal valuing the combined company at about $1.25 trillion (SpaceX ~$1 trillion, xAI ~$250 billion) with an IPO planned for June. Musk argues the merger will move AI compute into space by building a vast network of solar-powered datacentres via up to a million satellites. Experts warn of technical and maintenance challenges for space-based datacentres and potential impacts on SpaceX shareholders, while investors see strategic value in pairing Musk’s rocket hardware with AI software. Analysts also hint at broader Musk consolidation, including a possible Tesla–SpaceX tie-up.