SpaceX has agreed to acquire xAI, the developer of the Grok neural network, and is preparing for a public offering.

Terms and timing

The combined entity is valued at $1.25 trillion, and the initial public offering could take place as early as summer 2026, potentially becoming the largest IPO on record.

Strategic objective

The stated aim of the transaction is to deploy artificial intelligence data centers in orbit, integrating SpaceX launch and satellite capabilities with xAI’s models and software infrastructure.

Rationale for orbital training

Elon Musk predicts that within 2–3 years training neural networks in space will be the most cost-effective option due to abundant solar energy and reduced cooling constraints.

Planned infrastructure

SpaceX has filed for the launch of 1 million satellites intended to serve as orbital data centers, which the company estimates could provide up to 100 GW of computing capacity annually.

Implications

The deal brings together hardware, launch services and AI development under a single ownership structure, aligning satellite deployment plans with large-scale model training ambitions.