In February 2026, Elon Musk merged his artificial intelligence startup xAI into SpaceX in an all-stock deal, creating a $1.25 trillion private company. This combined entity, part rocket manufacturer, part satellite constellation operator, and part AI firm, subsequently went public, marking the largest stock market debut ever, according to fortune.com.
The integration of xAI into SpaceX expanded the company’s scope beyond aerospace to include artificial intelligence. Several executives who had built SpaceX’s launch business now oversee xAI operations as well. The leadership reshuffle also included the retirement of a longtime general counsel and the addition of two new board members to meet public market governance standards, fortune.com reported.
This merger positions SpaceX uniquely at the intersection of space technology and AI, reflecting Elon Musk’s strategy to combine cutting-edge sectors under one umbrella. The $1.25 trillion valuation surpasses many traditional aerospace and tech companies, underscoring the scale of Musk’s vision. The deal also highlights a growing trend of AI integration within established technology firms ahead of public offerings.
SpaceX’s board changes and leadership restructuring occurred just months before the IPO, aligning the company with investor expectations for governance. The public debut of this combined entity set a record for the largest market debut globally, as detailed by fortune.com.