- Updated: February 2, 2026
- 6 min read
Elon Musk Merges SpaceX with xAI and X: New Frontier for Space‑Based AI
Skip to main contentThe homepageThe VergeThe Verge logo.The VergeThe Verge logo.TechReviewsScienceEntertainmentAIPolicyHamburger Navigation ButtonThe homepageThe VergeThe Verge logo.Hamburger Navigation ButtonThe VergeThe Verge logo.Elon Musk merges SpaceX with xAI (and X)TechCloseTechPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All TechAICloseAIPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All AIScienceCloseSciencePosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All ScienceElon Musk merges SpaceX with xAI (and X)So that’s what he meant by the everything app.So that’s what he meant by the everything app.by Jay PetersCloseJay PetersSenior ReporterPosts from this author will be added to your daily email digest and your homepage feed.FollowFollowSee All by Jay PetersFeb 2, 2026, 9:53 PM UTCLinkShareGiftImage: SpaceXJay PetersCloseJay PetersPosts from this author will be added to your daily email digest and your homepage feed.FollowFollowSee All by Jay Peters is a senior reporter covering technology, gaming, and more. He joined The Verge in 2019 after nearly two years at Techmeme.Elon Musk is merging two of the companies that he leads, SpaceX and xAI (which also owns X), into one.According to an announcement from Musk:SpaceX has acquired xAI to form the most ambitious, vertically-integrated innovation engine on (and off) Earth, with AI, rockets, space-based internet, direct-to-mobile device communications and the world’s foremost real-time information and free speech platform. This marks not just the next chapter, but the next book in SpaceX and xAI’s mission: scaling to make a sentient sun to understand the Universe and extend the light of consciousness to the stars!Current advances in AI are dependent on large terrestrial data centers, which require immense amounts of power and cooling. Global electricity demand for AI simply cannot be met with terrestrial solutions, even in the near term, without imposing hardship on communities and the environment.In the long term, space-based AI is obviously the only way to scale. To harness even a millionth of our Sun’s energy would require over a million times more energy than our civilization currently uses!The only logical solution therefore is to transport these resource-intensive efforts to a location with vast power and space. I mean, space is called “space” for a reason.RelatedWill Elon Musk’s emails with Jeffrey Epstein derail his very important year?Billionaires want data centers everywhere, including spaceAs part of the announcement, Musk discusses the need for a new constellation of satellites designed for AI compute:My estimate is that within 2 to 3 years, the lowest cost way to generate AI compute will be in space.This cost-efficiency alone will enable innovative companies to forge ahead in training their AI models and processing data at unprecedented speeds and scales, accelerating breakthroughs in our understanding of physics and invention of technologies to benefit humanity.This new constellation will build upon the well-established space sustainability design and operational strategies, including end-of-life disposal, that have proven successful for SpaceX’s existing broadband satellite systems.He also claims that:The capabilities we unlock by making space-based data centers a reality will fund and enable self-growing bases on the Moon, an entire civilization on Mars and ultimately expansion to the Universe.The merger follows SpaceX’s filing with the FCC last week to get approval to launch a constellation of as many as one million data center satellites orbiting Earth.The deal also brings SpaceX and X, which is under intense scrutiny and an investigation in the EU because of the nonconsensual sexualized deepfakes generated by Grok, into one company.The combined company of SpaceX and xAI has a valuation of $1.25 trillion, and SpaceX still plans to IPO later this year, Bloomberg reports. SpaceX earned about $8 billion in profit last year, according to Reuters.The deal between SpaceX and xAI was completed on Monday, CNBC says.Last week, Reuters and Bloomberg reported that the potential deal was on the table, with Bloomberg also reporting that SpaceX was “considering” merging with Tesla, which is also led by Musk.As part of its earnings reported last week, Tesla disclosed that it would be investing $2 billion in xAI.Follow topics and authors from this story to see more like this in your personalized homepage feed and to receive email updates.Jay PetersCloseJay PetersSenior ReporterPosts from this author will be added to your daily email digest and your homepage feed.FollowFollowSee All by Jay PetersAICloseAIPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All AIElon MuskCloseElon MuskPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All Elon MuskScienceCloseSciencePosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All ScienceSpaceCloseSpacePosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All SpaceSpaceXCloseSpaceXPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All SpaceXTechCloseTechPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All TechxAIClosexAIPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All xAIMost PopularMost PopularBill Gates says accusations contained in Epstein files are ‘absolutely absurd’The tragedy of SupernaturalClaude Code is suddenly everywhere inside MicrosoftThis tiny pocket-friendly e-reader is packed with frustration and potentialBest gas masksThe Verge DailyA free daily digest of the news that matters most.Email (required)Sign UpBy submitting your email, you agree to our Terms and Privacy Notice.This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.Advertiser Content FromThis is the title for the native adMore in TechNotepad++ updates got hijacked for months and could have spied for ChinaIkea’s next cheap Bluetooth speaker is a playful purple mouseFirefox is adding a switch to turn AI features offAmazon’s desk-friendly Echo Show 8 is down to its lowest price everRaspberry Pi is raising prices again as memory shortages continueJeffrey Epstein arranged a meeting with Tim Cook for the former head of WindowsNotepad++ updates got hijacked for months and could have spied for ChinaStevie BonifieldTwo hours agoIkea’s next cheap Bluetooth speaker is a playful purple mouseAndrew LiszewskiTwo hours agoFirefox is adding a switch to turn AI features offEmma RothTwo hours agoAmazon’s desk-friendly Echo Show 8 is down to its lowest price everSheena Vasani7:27 PM UTCRaspberry Pi is raising prices again as memory shortages continueAndrew Liszewski6:52 PM UTCJeffrey Epstein arranged a meeting with Tim Cook for the former head of WindowsRichard Lawler6:45 PM UTCAdvertiser Content FromThis is the title for the native adTop Stories6:09 PM UTCFormer Windows 8 boss recruited Epstein to help negotiate his messy Microsoft exit11:00 AM UTCMeet the women furious with Mark Zuckerberg for killing Supernatural58 minutes agoWill Elon Musk’s emails with Jeffrey Epstein derail his very important year?Feb 1Shedding light on Iran’s longest internet blackoutFeb 1This tiny pocket-friendly e-reader is packed with frustration and potential17 minutes agoWaymo raises $16 billion to take its robotaxi business ‘global’
Andrii Bidochko
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Andrii Bidochko is an AI entrepreneur and researcher focused on AI agents, reinforcement learning, and autonomous systems. He writes about the technologies shaping the future of machine intelligence, from frontier models and agent architectures to real-world AI applications.