SpaceX memo confirms merger with xAI, valuing the company at $1.25 trillion.

Elon Musk plans to merge SpaceX with xAI, a move aimed at consolidating his growing strategic footprint in artificial intelligence and space exploration, according to sources familiar with the matter. The merger was announced via an internal memo on Monday, the sources said. The combined company is expected to be priced at approximately $527 per share, valuing the company at $1.25 trillion. Neither SpaceX nor xAI has responded. This move further intertwines Musk's various businesses. He acquired the social media platform Twitter (later renamed X) in late 2022, subsequently merging it with xAI for $33 billion. xAI also operates the chatbot Grok, spending approximately $1 billion per month on its goal of achieving a deep understanding of the universe. A merger with SpaceX would consolidate funding, talent, and computing resources, while blurring the lines between the two companies. This merger may realize Musk's vision of deploying data centers in space to support complex AI computing. According to documents filed last Friday, SpaceX is applying for permits for this plan, aiming to launch up to 1 million satellites into Earth orbit.