Core Insights - SpaceX has acquired xAI in a $1.25 trillion merger, consolidating Musk's business empire as SpaceX prepares for a public offering later this year [1][2] Group 1: Merger Details - The merger aims to create a vertically-integrated innovation engine combining AI, rockets, space-based internet, and direct-to-mobile communications [2] - SpaceX is valued at $1 trillion, while xAI is valued at $250 billion, positioning the combined entity for a stock market float exceeding $1 trillion [4] - The float is anticipated to coincide with a planetary alignment and Musk's birthday in early summer [4] Group 2: Strategic Rationale - The acquisition is driven by Musk's vision for space-based datacenters to support AI, addressing the limitations of terrestrial datacenters in meeting global electricity demand [5] - Musk's recent business strategies have increasingly intertwined his companies through various deals and acquisitions [5] Group 3: Company Valuations and Market Position - SpaceX has received significant valuations, with an expected value of $800 billion as it dominates satellite launches and secures government contracts [6] - xAI has also seen a rise in valuation, recently announcing a $20 billion Series E fundraise, valuing the company at $230 billion [7] Group 4: Market Context - The merger announcement comes amid challenges for Musk, including declining revenues at Tesla and negative publicity related to his communications with Jeffrey Epstein [9][10]

NEW YORK (AP) — Elon Musk is joining his space exploration and artificial intelligence ventures into a single company before what's expected to be a massive initial public offering for the business later this year. His rocket venture, SpaceX, announced on Monday that it had bought xAI in an effort to help the world’s richest man dominate the rocket and artificial intelligence businesses. The deal will combine several of his offerings, including his AI chatbot Grok, his satellite communications company Sta ...

the latest updates from the market.To find the latest Stock Market Today threads, click here. Happy Monday. This is TheStreet’s Stock Market Today for Feb. 2, 2026. You can follow the latest updates on the market here in our daily live blog. Update: 4:00 p.m. ET Closing Bell The U.S. markets are now closed. The Dow (+1.05%) and Russell 2000 (+1.02%) added over one percent, while the Nasdaq (+0.56%) and S&P 500(+0.54%) added half a percent. However, the real circus came after the market closed for the da ...