Elon merged xAI and SpaceX into a single entity.
One company controlling:
AI
rockets
general satellites
proprietary Starlink
and the launch infrastructure to scall all 4.
The combined enterprise value exceeds $1.25 trillion…yes, that’s in US dollars.
Why did Elon make this move?
Maybe because xAI is rumored to lose ~$1.5 billion/quarter.
That’s a tough position to raise capital and you’re at the mercy of market moods – something Mr. Musk loathes.
Solution: embed xAI in cash flow positive SpaceX.
SpaceX generates tens of billions and has large government contracts (Space Force, defense agencies and NASA), and it’s just getting started.
OpenAI is in trouble – it too is unprofitable with a long horizon to green fields ($8 billion lost in ’25 with a projected $14 billion loss in ’26).
So the AI race is down to 2 of the largest players on completely different footings: one backed by a profitable growing company with the ability to put solar powered AI data centers in space (yes, this is a thing), the other floundering in deep red every quarter.
Which would you rather invest in (if you could)?
A Merger to Unlock Synergies and Shore Up Losses
