The post Will $1.25T SpaceX-xAI Merge Boost TSLA? appeared on BitcoinEthereumNews.com.

Tesla shares closed at $421.96 as of February 4, holding flat while broader markets slipped. The muted move came as investors digested reports that SpaceX and xAI formally announce a merger. The discussions, shared with select investors, have fueled speculation about how Elon Musk’s expanding corporate ecosystem could intersect with Tesla’s long-term strategy.  Could this reshape how markets view TSLA? SpaceX and xAI Move To a Landmark Deal People familiar with the matter said SpaceX and xAI have created a merger that unites two of the most valuable private companies in the world. Bloomberg first reported the talks, noting that negotiations remained active and no final agreement had been signed.  Source: Amuse via X Sources said a formal announcement could arrive within days, though the structure could still change. On Feb 3rd, Elon confirmed that SpaceX had acquired xAI, unifying rockets, satellites, compute, and artificial intelligence into one vertically integrated engine. This is how America wins the next technological era. A Strategic Link Between Space and Artificial Intelligence The completed merger integrated SpaceX’s launch capabilities and satellite infrastructure with xAI’s artificial intelligence models and computing operations. Investors briefed on the transaction described it as a natural extension of Musk’s broader strategy to share infrastructure across his businesses. SpaceX’s Starlink constellation emerged as a central asset within the combined platform. The company has pursued regulatory approval to deploy up to one million satellites over time, dramatically expanding its global reach. That network now provides a potential foundation for distributed, low-latency AI workloads operated by xAI. Space-based computing, once theoretical, moved closer to commercial reality. Valuation Benchmarks and IPO Context At the time of the merger, SpaceX carried a private-market valuation of nearly $800 billion. Market participants have previously projected that a future initial public offering could value the company above $1…

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Filed under: News - @ February 4, 2026 11:28 am