Elon Muskrocket maker SpaceX possessed artificial intelligence sending xAI on Tuesday, CNBC’s David Faber reported the deal valued the company at $1.25 trillion.
The record-setting deal is the largest merger of all time and values SpaceX at $1 trillion and xAI at $250 billion, according to documents seen by CNBC.
Musk announced the deal blog post on Monday it said it is building “the most ambitious, vertically integrated innovation engine on Earth (and beyond), AI, rockets, space internet and social media platform X.”
The main reason for the merger, he says, is to better build “orbital data centers.”
Bloomberg previously announced the price of the merger.
The deal comes ahead of SpaceX’s much-anticipated blockbuster initial public offering later this year. The Financial Times earlier it was reported that the company intends to raise up to 50 billion dollars at a price higher than 1.5 trillion dollars.
Structured as a stock exchange, the merger deal will exchange xAI’s stake for 0.1433 shares of SpaceX stock. The documents show xAI at $75.46 per share and SpaceX at $526.59.
Bank valuation documents provided by CNBC value SpaceX at $859 billion to $1.26 trillion and xAI at $219 billion to $294 billion.
Another key reason for the merger is to provide more capital to xAI, which makes Grok’s chatbot.
The startup is burning through cash as it races to build infrastructure against rival AI labs like OpenAI and Anthropic.
OpenAI was last valued at $500 billion in October Anthropic signed the term sheet for a round valued at $350 billion last month.
By comparison, xAI was last valued at around $230 billion a year $20 billion funding round closed last month.
Musk, who co-founded OpenAI and left in 2018, founded xAI in 2023. Its Grok AI tool has recently come under fire for allowing users to create. sexual imagesincluding children.
SpaceXAI that builds satellites and reusable rockets could benefit from running data centers in space to meet the growing demand.
The company is best known for its Starlink satellite Internet service and has contracts with the Department of Defense and NASA. lunar missions.
News of SpaceX’s possible 2026 IPO first broke in December, when Musk reported on the planned offering. “exactly” not long after.
The Financial Times previously reported that Musk was gearing up for a mid-June debut with his birthday and planetary alignment.
CNBC’s Laura Kolodny contributed to this story.
