The merger of SpaceX and xAI is reshaping how investors view Musk’s companies—linking rockets, satellites, and artificial intelligence into one of the most ambitious technology bets ever.

SpaceX announced today that it has acquired xAI, Elon Musk’s AI company, in a deal that creates a combined entity reportedly valued at $1.25 trillion ahead of a planned IPO. The acquisition notably does not include Tesla,

XAI and SpaceX branding will stay separate and collaboration will be limited, the company told staff.