What is the total value of the SpaceX and xAI deal orchestrated by Elon Musk?

The deal values SpaceX at $1 trillion and xAI at $250 billion, making it the largest merger and acquisition in history.

What is Elon Musk's stated reason for acquiring xAI with SpaceX?

Musk has stated the deal's rationale involves "scaling to make a sentient sun to understand the Universe" and launching data centers into space.

How does the SpaceX and xAI deal compare to previous mega-M&A transactions?

This deal is the largest merger and acquisition in history, surpassing previous mega-deals like Vodafone's acquisition of Mannesmann and AOL's merger with Time Warner.

Home / Business and Economy / Musk's $1 Trillion SpaceX Deal Dwarfs All Records

Musk's $1 Trillion SpaceX Deal Dwarfs All Records

4 Feb

•

Summary

SpaceX acquired xAI in a $1 trillion deal for SpaceX.
xAI valued at $250 billion in the record-breaking transaction.
The deal is the largest merger and acquisition in history.

Musk's $1 Trillion SpaceX Deal Dwarfs All Records

Elon Musk has finalized the largest merger and acquisition deal in history, acquiring his artificial intelligence company xAI for $250 billion. This transaction places a $1 trillion valuation on his rocket and satellite firm, SpaceX. The deal's financial logic is tied to Musk's ambitious, often unconventional, terms.

SpaceX reportedly generated approximately $8 billion in EBITDA on up to $16 billion in revenue last year. Projections suggest over $22 billion in revenue next year, potentially yielding $11 billion in EBITDA. This valuation is comparable to Tesla's market multiples.

xAI's valuation is a more complex calculation, having lost $1.5 billion in the third quarter on $107 million in revenue. Despite current losses, its revenue doubled in the preceding quarter, with projections indicating over $6 billion this year.