Musk said SpaceX could surpass rivals in AI over time and indicated that AI-focused companies are likely to dominate the broader market.
- The comments come on the heels of SpaceX’s merger with xAI, which values the combined entity at about $1.25 trillion.
- The deal combines SpaceX’s satellite and launch infrastructure with xAI’s models, as Musk said terrestrial systems cannot meet AI electricity demand.
- SpaceX plans to list on Nasdaq and seek early Nasdaq-100 inclusion, with a potential IPO as early as June.
Elon Musk, who leads SpaceX and Tesla, said the rocket maker will “far exceed everyone combined” in AI, as the company deepens its integration with xAI and moves closer to a potential $1.75 trillion IPO.
Meanwhile, shares of Tesla, his only listed company as yet, snapped two straight sessions of losses on Monday to end over 1% higher at $395.56.
Musk Says SpaceX Will Lead AI Race
Musk said SpaceX could lead the AI race in response to posts on X discussing competition in the sector. Replying to a post that said Google DeepMind could win the AI race, Musk wrote, “For a few years, then SpaceX will far exceed everyone combined,” and later clarified in a separate post that he meant “everyone else combined.”
In a separate response to a post saying that AI-focused companies could “crush everyone else,” Musk said, “Not saying I necessarily want this to happen, just that it will.”
SpaceX-xAI Deal Signals AI Push
Musk’s comments come as SpaceX expands its AI ambitions through its merger with xAI, the startup behind the Grok chatbot. The deal reportedly values SpaceX at about $1 trillion and xAI at $250 billion, creating a combined entity valued at around $1.25 trillion. As part of the transaction, xAI shareholders will supposedly receive 0.1433 shares of SpaceX for each xAI share, with some executives able to opt for cash at about $75.46 per share.
Under the structure, xAI operates as a unit of SpaceX, while the two businesses remain operationally separate due to regulatory requirements. The deal brings together SpaceX’s launch capabilities and satellite infrastructure with xAI’s AI models, reflecting Musk’s push to develop AI systems powered by space-based assets.
Musk has said terrestrial infrastructure cannot currently meet AI’s electricity demands and that space-based systems could use solar energy more efficiently to power large-scale computing. SpaceX’s Starlink satellite network has become a major revenue driver and is central to the company’s long-term strategy.
SpaceX IPO Nears With Nasdaq Focus
SpaceX’s looming IPO places it among the most valuable companies in the U.S. and near Saudi Aramco’s market value at the time of its record $29 billion debut. The company is reportedly leaning toward listing on Nasdaq and seeking early inclusion in the Nasdaq-100 index, with proposed rule changes that could allow faster entry for newly listed megacap firms.
The company had also explored a potential merger involving Tesla as part of broader restructuring discussions that later led to the xAI tie-up, highlighting the close integration across Musk’s companies. The IPO could take place as early as June.
Separately, Tesla has received U.S. regulatory clearance to convert its previously announced $2 billion investment in xAI into a stake in SpaceX following the merger. The investment is expected to translate into a stake of less than 1%.
How Did Stocktwits Users React?
On Stocktwits, retail sentiment across Musk’s firms was mixed, with SpaceX and Tesla at ‘neutral’ amid ‘high’ message volume, while xAI was ‘bullish’ amid ‘normal’ message volume.
Tesla’s stock has risen nearly 60% over the past year, but is down over 12% so far in 2026 — ranking as the second-worst performer among the “Magnificent Seven” group of equities.
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