SpaceX has acquired xAI, the artificial intelligence company founded by Elon Musk, in a record-setting deal aimed at bringing together advanced AI technology and space exploration.
The move signals Musk’s growing ambition to integrate artificial intelligence into space operations, including spacecraft design, autonomous navigation, satellite intelligence, and mission control systems.
Although the value of the deal was not officially disclosed, sources familiar with the matter say it ranks among the largest technology acquisitions in recent years. The transaction brings xAI directly under SpaceX’s control, tightening Musk’s grip over both cutting-edge AI development and private spaceflight.
xAI was launched to compete with leading AI firms and focuses on building advanced models designed to “understand the universe.” By folding the company into SpaceX, Musk aims to accelerate innovation across both sectors.
Industry analysts say AI could play a major role in future SpaceX missions by improving rocket safety, launch efficiency, satellite operations, and deep-space decision-making. The technology may also support SpaceX’s long-term goals, including missions to Mars.
However, the deal is expected to face regulatory scrutiny. SpaceX holds billions of dollars in U.S. federal contracts with NASA, the Department of Defense, and intelligence agencies, all of which have authority to review mergers and acquisitions for national security risks.
Government reviewers will assess whether the merger raises concerns related to data access, defense technology, or concentration of power in critical sectors.
Despite the expected oversight, the acquisition underscores Musk’s strategy of building an interconnected ecosystem that links space, artificial intelligence, communications, and advanced engineering.
If approved, the merger could reshape how AI is used in space exploration and strengthen SpaceX’s position as a global leader in aerospace innovation.
