U.S. space stocks rise after SpaceX merges with xAI at US$1.25 trillion valuation

U.S. space stocks climbed after Elon Musk announced SpaceX would merge with xAI in a deal valuing the combined company at US$1.25 trillion; Musk said space-based computing could be the most cost-effective way to generate AI compute within two to three years.

U.S. space stocks rose following an announcement that SpaceX will merge with xAI in a deal valuing the combined entity at US$1.25 trillion. Elon Musk said the merger aims to create an integrated group spanning AI, rocket technology, satellite internet services and direct-to-mobile communications. He also said space-based AI compute could become the most cost-effective option within two to three years. The announcement came alongside reporting that SpaceX may pursue a public offering this year. Key details: - The merger was announced by Elon Musk and places a combined valuation at US$1.25 trillion, according to the report. - Musk described plans to integrate AI work with SpaceX’s rocket and satellite capabilities and to support direct-to-mobile services. - Commentators and investment firms, including AJ Bell and Seraphim Space, noted potential implications for investment in space technology. - Reports say SpaceX is planning a public offering this year that could value the company above US$1.5 trillion, according to unnamed sources cited by the reporting outlet. - The report also says SpaceX has requested permission to launch up to 1 million satellites intended to power space-based AI data centers. Summary: U.S. space stocks rose after the merger announcement, reflecting market attention to plans for space-based AI infrastructure. Reports of a possible SpaceX IPO and pending regulatory decisions on the satellite constellation are the next developments to watch; Undetermined at this time.