SpaceX has confirmed that it has merged with artificial intelligence company xAI, bringing together two of Elon Musk’s biggest companies.
In a statement posted to the SpaceX website, that was first shared internally with employees this morning, Musk described the transaction as the creation of a “vertically-integrated innovation engine,” combining SpaceX’s launch and satellite capabilities with xAI’s artificial intelligence platforms.
Newly updated business filings in Nevada have also confirmed the merger. The filings, first shared by X user @xdNiBoR show that X.AI Holdings Corp. was dissolved as part of the transaction and merged into a newly formed entity, marking a formal consolidation of the two companies.
The filings indicate X.AI Holdings Corp. has been marked as “Merge Dissolved,” with merger documents dated February 2, 2026. The surviving entity is listed as K2 Merger Sub 2 LLC, a special-purpose merger subsidiary created to facilitate the transaction.
Shortly after the merger, the entity was renamed XAI Holdings LLC, indicating that xAI’s brand will anchor the combined structure.
While no financial details were released by SpaceX, reporting from Bloomberg indicate the merged company could seek a valuation of roughly $1.25 trillion in an initial public offering (IPO), with shares potentially priced around $527—figures that would place the company among the most valuable private enterprises in history.
The merger also helps explain what was at the time a cryptic post by Tesla’s official Cybertruck account on X. The post included an image of a Cybertruck with its front wheel sitting on the X button of a keyboard, along with the caption, “Admin reveal.”
Admin reveal pic.twitter.com/311iinEgPI
— Cybertruck (@cybertruck) February 2, 2026
The Tesla connection is that, as of last week, the automaker is a minority owner of xAI following a $2 billion investment in the company. There have also been reports that all three companies, SpaceX, xAI, and Tesla, could possibly merge in the future.
You can read Musk’s full statement about the vision for the new company on the SpaceX website.
This is a developing story, check back for updates…
