SpaceX Acquires xAI — Rockets, Grok, and Colossus Share One Balance Sheet
SpaceX acquired xAI on February 2. Reuters reported a $1.25 trillion combined valuation and a share exchange, with a cash option for some xAI executives. The deal followed xAI’s $20 billion Series E.
SpaceX announced its acquisition of xAI on February 2. The deal brings the Grok developer and its X distribution together with SpaceX’s rocket and satellite businesses. That changes the financial context for the AI business; it does not establish a change in model capability or API terms.
Reuters, citing a person familiar with the transaction, reported values of $1 trillion for SpaceX and $250 billion for xAI, or $1.25 trillion combined. Those are reported private transaction valuations, not audited public-market comparisons.
The wire reported that xAI investors would receive 0.1433 SpaceX shares for each xAI share. Some xAI executives could instead elect $75.46 in cash per share, its source said. The earlier description of an unqualified all-stock deal missed that reported cash option.
The acquisition followed xAI’s January 6 announcement that it had raised $20 billion in Series E funding. Combining the businesses links the AI company’s compute-expansion plans to a larger corporate group. Any claim about how particular investors will fare requires the actual transaction terms.
Claims vs checks
The acquisition and fundraising announcements are primary company sources. Valuations, the exchange ratio, and the cash option are Reuters reporting attributed to an unnamed source. The two Reuters items are related reporting, not independent confirmations.
Limits
The company announcement reviewed here does not provide the complete merger agreement or investor-specific treatment.
Correction (October 14, 2026): Added the reported exchange ratio and executive cash option; removed the unsupported claim that exchange ratios were undisclosed.