WSJ Tech News Briefing TNB Tech Minute: SpaceX Acquires xAI
26 snips
Feb 3, 2026 SpaceX buys xAI and the combined company is pegged at a $1.25 trillion valuation. France raids a major social platform over alleged algorithm bias and deepfake scandals. Spain plans to bar under-16s from social media and push legal accountability onto platform leaders.
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SpaceX Absorbs xAI At High Valuation
- SpaceX acquired xAI and will convert xAI shares into SpaceX stock at a set ratio.
- The combined company is valued at $1.25 trillion according to internal communications.
Shareholders Have Conversion Or Cash-Out Options
- xAI shareholders can convert their shares into 0.1433 shares of SpaceX stock or sell back to the company.
- Employees will have the option to cash out by selling their xAI shares back to the company.
Musk Continues Consolidation Strategy
- The deal continues Elon Musk's pattern of integrating his businesses.
- He previously merged xAI with X last year, showing consolidation across his companies.