Explained: Why Elon Musk merged his space and AI businesses to create a $1.25 trillion behemoth

SpaceX has acquired xAI in a deal that rolls all of xAI’s equity into SpaceX, making xAI a wholly owned subsidiary under the SpaceX corporate umbrella. Musk is presenting this combined entity as a single, integrated platform that brings together rockets, satellites, advanced AI models, and the social media assets connected to xAI.