SpaceX has finalized its acquisition of xAI, Elon Musk's artificial intelligence company, in a deal that consolidates two major components of Musk's business empire while maintaining the rocket company's timeline for a public offering later this year.

The merger, completed on February 2, 2026, brings together SpaceX's aerospace capabilities with xAI's artificial intelligence technology. According to public filings, SpaceX acquired xAI as part of what Musk has described as an ambitious vision to launch a network of data-center satellites capable of running advanced AI models from space.

IPO Timeline and Valuation Targets

Despite the integration challenges, SpaceX continues to target an initial public offering as early as summer 2026, with reports indicating the company is seeking a valuation of approximately $1.5 trillion. Market analysts have assigned an 83% probability to SpaceX going public before the end of 2027, according to recent assessments.

The merger has created ripple effects across investment funds, particularly impacting the KraneShares AI ETF (AGIX), which previously held xAI shares. These holdings have been converted to SpaceX shares, giving AGIX shareholders indirect exposure to the aerospace company. No action is required from AGIX shareholders regarding the conversion, according to fund administrators.

Leadership Changes and Financing

The merger comes amid significant personnel changes at xAI, with six of the company's 12 founding members departing since the acquisition announcement. Industry sources describe these departures as amicable, noting that the pending IPO provides substantial financial incentives for all parties involved.

To support the expanded operations, xAI has secured additional financing through Apollo Global Management, which is providing a $3.4 billion loan facility specifically for purchasing Nvidia chips. This arrangement, facilitated by Valor Equity Partners, follows a previous $3.5 billion funding round and supports the company's computational infrastructure requirements.

The combined entity now operates under SpaceX's corporate structure, with xAI's artificial intelligence capabilities integrated into the aerospace company's broader technology portfolio. Industry observers note this represents one of the largest consolidations in the intersection of space technology and artificial intelligence sectors.