Elon Musk's xAI Merges into SpaceX, Renamed SpaceXAI

Latest news, Elon Musk's artificial intelligence company xAI will cease independent operations and merge into SpaceX, being renamed SpaceXAI, becoming SpaceX's AI product division.

Just hours before Musk's announcement, SpaceXAI had reached a partnership with Anthropic, allowing the latter to use over 300 megawatts of AI supercomputing resources under SpaceXAI, and the two sides also plan to collaborate on developing several gigawatts of orbital AI computing power.

Musk also stated that SpaceX will provide computing resources to other AI companies, provided these companies use their models to benefit all of humanity.

Founded by Musk in 2023, xAI's core team includes top AI talents from institutions like OpenAI and Google DeepMind. Initially, it was positioned as a nonprofit organization with the core mission of "understanding the nature of the universe."

The company has launched the AI chatbot Grok, built the "Colossus 1" training system, and its upgraded Colossus 2, launched in early 2026, is equipped with 550k NVIDIA GB200 GPUs, making it the world's first gigawatt-level AI training cluster.

In February this year, SpaceX acquired xAI through a full stock transaction. At that time, SpaceX was valued at about $1 trillion, xAI at $250 billion, and the combined valuation after merger reached $1.25 trillion, setting a record for the highest valuation in corporate M&A history.

Although xAI informed employees that it would not change its name in the short term after the acquisition, Musk's recent announcement that xAI has merged into SpaceX to become SpaceXAI marks the full completion of the integration.

Musk said the core of this integration is the "space computing" strategic layout, because Earth's energy and heat dissipation limits will constrain AI computing development. It is expected that within two to three years, the minimum cost of generative AI computing will shift to space, and SpaceXAI will become SpaceX's "space brain" for exploration.

However, the post-merger SpaceXAI still faces many challenges. The founding team of xAI has already experienced departures, and the company is "obviously lagging behind competitors"; additionally, space computing involves high technical difficulty, high investment costs, and strict policy regulation.

Moreover, SpaceX plans to launch an IPO around mid-year, targeting a valuation of about $2 trillion. The integration of SpaceXAI will be a key support for this valuation, and its commercialization prospects will directly influence market expectations.

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