SpaceX acquires xAI in record-setting deal as Musk looks to unify AI and space ambitions

• The deal is the biggest M&A transaction of all time
• Deal values xAI at $250 billion, SpaceX at $1 trillion
• Merger consolidates Musk’s empire ahead of SpaceX IPO

The merger comes as the space company plans a blockbuster public offering this year that could value it at over $1.5 trillion, two people familiar with the matter said.

SpaceX, xAI and Musk did not immediately respond to requests for comment.

The deal further consolidates Musk’s far-flung business empire and fortunes into a tighter, mutually reinforcing ecosystem – what some investors and analysts informally call the “Muskonomy” – which already includes Tesla (TSLA.O), opens new tab, brain-chip maker Neuralink and tunnel firm the Boring Company.