Elon Musk merges SpaceX and xAI to create a $1.5 trillion company that will develop the first computing infrastructure outside of Earth
It's official. Musk has combined the world's largest rocket company with his AI startup.
The market is calling what's to come "The Biggest IPO in History".
The goal: to launch Orbital Data Centers that run AI using the infinite solar energy of space and the natural cooling of a vacuum!
2- The Futurist Thesis (The End of the Bottleneck)
The biggest problem with AI today (as incredible as it may seem) is not the chip, it's energy and cooling.
Musk's solution? Space.
• Energy: Orbital solar panels are much more efficient (no night/clouds).
• Cooling: The vacuum of space offers free natural cooling for the servers.
SpaceX launches the infrastructure, xAI operates the intelligence.
3- The Business Thesis (Full Vertical Integration)
Forget the term "rocket company." The merger creates a vertically integrated entity without competitors, dominating three critical areas:
- Launch (Starship/Rockets).
- Connectivity (Starlink).
- Intelligence (Grok).
It's total control of civilization's infrastructure, from orbit to data processing on your cell phone.
4- Financial Engineering (Why now?)
The marriage is perfect for the balance sheet:
• xAI: It's a cash-burning machine (needs billions for GPUs).
• SpaceX: It's a cash-generating machine (recurring revenue from Starlink).
Musk is using rocket profits to fund the AI war.
The result? An estimated IPO of US$1.5 trillion by 2026.
5- The Military Angle (Pentagon)
The American government is a key player in this.
The merger enables the Starshield network: spy satellites that not only take pictures, but process the data in real time (using Grok's on-board AI) and transmit the solution via laser.
It's the fastest "Kill Chain" in the world, without depending on ground stations.
6- Behind the Scenes of the Agreement
Records confirm: the merger was sealed on February 2, 2026.
The new holding company has SpaceX as its manager and investors such as Nvidia, Cisco, and sovereign wealth funds.
Musk is no longer building separate companies. He is consolidating his empire into a single "engine of innovation."
7- While Google and Microsoft fight over land and access to the electrical grid on Earth, Musk decided to change the game's perspective.
By taking computing to where energy is infinite and space is limitless, he transforms the "Cloud" into a real physical constellation.
8- An IPO of this size drains liquidity from the entire technology sector.
Who loses ground in global indices with the entry of this giant?