{"id":33302,"date":"2026-02-02T22:23:07","date_gmt":"2026-02-03T03:23:07","guid":{"rendered":"https:\/\/sharewatch.com\/wp\/2026\/02\/02\/elon-musks-spacex-confirms-it-is-taking-over-xai\/"},"modified":"2026-02-02T22:23:07","modified_gmt":"2026-02-03T03:23:07","slug":"elon-musks-spacex-confirms-it-is-taking-over-xai","status":"publish","type":"post","link":"https:\/\/sharewatch.com\/wp\/2026\/02\/02\/elon-musks-spacex-confirms-it-is-taking-over-xai\/","title":{"rendered":"Elon Musk’s SpaceX confirms it is taking over xAI"},"content":{"rendered":"
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SpaceX to take over Elon Musk’s AI firm<\/h2>\n<\/p>\n<\/div>\n
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Kali Hays,<\/span>Technology reporter<\/span>and<\/span><\/p>\n

Lily Jamali,<\/span>North America Technology correspondent<\/span><\/p>\n

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Reuters<\/span><\/p>\n<\/div>\n<\/figure>\n<\/div>\n

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Elon Musk’s SpaceX is taking over his artificial intelligence (AI) start-up, as the billionaire continues to unify some of his many business interests. <\/p>\n<\/div>\n

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SpaceX confirmed the deal to acquire xAI, a smaller firm known for its Grok chatbot, posting a memo from Musk about the merger on its website.<\/p>\n<\/div>\n

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In the note, Musk said the combination would form an “innovation engine” putting AI, rockets, space-based internet, and media under one roof. <\/p>\n<\/div>\n

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Terms of the deal were not disclosed. However, a source familiar said it valued xAI at $125bn (\u00a391bn) and SpaceX at $1tn, making it the most valuable private company ever.<\/p>\n<\/div>\n

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Last month, Musk’s electric car company, Tesla, also announced it had invested $2bn into xAI. <\/p>\n<\/div>\n

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Musk told Tesla investors at the time that he envisioned xAI functioning as an “orchestra conductor” for Tesla factories employing autonomous robots. <\/p>\n<\/div>\n

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At the same time, Musk also said Tesla would stop the manufacture of two car models in favour of producing robots – one of the most significant pivots the company has made.<\/p>\n<\/div>\n

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Tesla moved forward with the xAI investment despite objections from some shareholders, who had questioned the decision to divert resources to another Musk firm. In a vote last year, abstentions and votes against the idea outnumbered those who approved.<\/p>\n<\/div>\n

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SpaceX is also reported to be working on plans to list its shares for public trading.<\/p>\n<\/div>\n

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Emily Zheng, a senior analyst at Pitchbook, said the deal for xAI has all the markings of a company preparing for a public listing. <\/p>\n<\/div>\n

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“The sheer cost of compute, infrastructure, and energy is why we are seeing many of venture’s most valuable startups like SpaceX prepare to go public this year,” Zheng said. <\/p>\n<\/div>\n

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“Consolidating these companies ahead of an IPO allows SpaceX to present a differentiated, capital-efficient growth narrative to public investors.”<\/p>\n<\/div>\n

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IPO stands for Initial Public Offering, and this is when a private company first sells its stock to the public on a stock exchange.<\/p>\n<\/div>\n

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In the SpaceX memo announcing the xAI merger, Musk said he thought space would provide the solution to the energy needs faced by AI firms. <\/p>\n<\/div>\n

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“In the long term, space-based AI is obviously the only way to scale,” he wrote.<\/p>\n<\/div>\n

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He said launching AI satellites from Earth would be the “immediate focus”, but added that the deal would also help advance his bigger ambitions. <\/p>\n<\/div>\n

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“The capabilities we unlock by making space-based data centers a reality will fund and enable self-growing bases on the Moon, an entire civilization on Mars and ultimately expansion to the Universe,” he wrote.<\/p>\n<\/div>\n

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Neuralink and The Boring Company now appear to be the only two smaller Musk companies that have not been brought under one of his larger operations.<\/p>\n<\/div>\n

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xAI started out as a segment of X, formerly known as Twitter, after Musk acquired the social media platform in 2022, using its access to real-time text and information as AI training data.<\/p>\n<\/div>\n

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By spring of 2025, xAI was independently incorporated and valued more highly by investors than X. <\/b><\/p>\n<\/div>\n

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The AI company acquired the social media platform in an all-stock deal, with Musk saying the merger would “combine the data, models, compute, distribution and talent”.<\/p>\n<\/div>\n

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xAI’s main product is Grok, which has come under scrutiny several times over its AI image generation feature.<\/p>\n<\/div>\n

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In recent weeks, the European Commission and UK watchdog Ofcom both launched investigations into X over concerns Grok was used to create sexualised images. <\/p>\n<\/div>\n

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xAI said in January it had imposed restrictions on Grok users that limit image editing.<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

SpaceX to take over Elon Musk’s AI firm Kali Hays,Technology reporterand Lily Jamali,North America Technology correspondent Reuters Elon Musk’s SpaceX is taking over his artificial intelligence (AI) start-up, as the billionaire continues to unify some of his many business interests. SpaceX confirmed the deal to acquire xAI, a smaller firm known for its Grok chatbot, […]<\/p>\n","protected":false},"author":1,"featured_media":33303,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ocean_post_layout":"","ocean_both_sidebars_style":"","ocean_both_sidebars_content_width":0,"ocean_both_sidebars_sidebars_width":0,"ocean_sidebar":"","ocean_second_sidebar":"","ocean_disable_margins":"enable","ocean_add_body_class":"","ocean_shortcode_before_top_bar":"","ocean_shortcode_after_top_bar":"","ocean_shortcode_before_header":"","ocean_shortcode_after_header":"","ocean_has_shortcode":"","ocean_shortcode_after_title":"","ocean_shortcode_before_footer_widgets":"","ocean_shortcode_after_footer_widgets":"","ocean_shortcode_before_footer_bottom":"","ocean_shortcode_after_footer_bottom":"","ocean_display_top_bar":"default","ocean_display_header":"default","ocean_header_style":"","ocean_center_header_left_menu":"","ocean_custom_header_template":"","ocean_custom_logo":0,"ocean_custom_retina_logo":0,"ocean_custom_logo_max_width":0,"ocean_custom_logo_tablet_max_width":0,"ocean_custom_logo_mobile_max_width":0,"ocean_custom_logo_max_height":0,"ocean_custom_logo_tablet_max_height":0,"ocean_custom_logo_mobile_max_height":0,"ocean_header_custom_menu":"","ocean_menu_typo_font_family":"","ocean_menu_typo_font_subset":"","ocean_menu_typo_font_size":0,"ocean_menu_typo_font_size_tablet":0,"ocean_menu_typo_font_size_mobile":0,"ocean_menu_typo_font_size_unit":"px","ocean_menu_typo_font_weight":"","ocean_menu_typo_font_weight_tablet":"","ocean_menu_typo_font_weight_mobile":"","ocean_menu_typo_transform":"","ocean_menu_typo_transform_tablet":"","ocean_menu_typo_transform_mobile":"","ocean_menu_typo_line_height":0,"ocean_menu_typo_line_height_tablet":0,"ocean_menu_typo_line_height_mobile":0,"ocean_menu_typo_line_height_unit":"","ocean_menu_typo_spacing":0,"ocean_menu_typo_spacing_tablet":0,"ocean_menu_typo_spacing_mobile":0,"ocean_menu_typo_spacing_unit":"","ocean_menu_link_color":"","ocean_menu_link_color_hover":"","ocean_menu_link_color_active":"","ocean_menu_link_background":"","ocean_menu_link_hover_background":"","ocean_menu_link_active_background":"","ocean_menu_social_links_bg":"","ocean_menu_social_hover_links_bg":"","ocean_menu_social_links_color":"","ocean_menu_social_hover_links_color":"","ocean_disable_title":"default","ocean_disable_heading":"default","ocean_post_title":"","ocean_post_subheading":"","ocean_post_title_style":"","ocean_post_title_background_color":"","ocean_post_title_background":0,"ocean_post_title_bg_image_position":"","ocean_post_title_bg_image_attachment":"","ocean_post_title_bg_image_repeat":"","ocean_post_title_bg_image_size":"","ocean_post_title_height":0,"ocean_post_title_bg_overlay":0.5,"ocean_post_title_bg_overlay_color":"","ocean_disable_breadcrumbs":"default","ocean_breadcrumbs_color":"","ocean_breadcrumbs_separator_color":"","ocean_breadcrumbs_links_color":"","ocean_breadcrumbs_links_hover_color":"","ocean_display_footer_widgets":"default","ocean_display_footer_bottom":"default","ocean_custom_footer_template":"","ocean_post_oembed":"","ocean_post_self_hosted_media":"","ocean_post_video_embed":"","ocean_link_format":"","ocean_link_format_target":"self","ocean_quote_format":"","ocean_quote_format_link":"post","ocean_gallery_link_images":"on","ocean_gallery_id":[],"footnotes":""},"categories":[19,21,20],"tags":[],"class_list":["post-33302","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-market","category-news","entry","has-media"],"_links":{"self":[{"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/posts\/33302","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/comments?post=33302"}],"version-history":[{"count":0,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/posts\/33302\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/media\/33303"}],"wp:attachment":[{"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/media?parent=33302"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/categories?post=33302"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/tags?post=33302"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}