Elon Musk is combining rocket maker SpaceX with his artificial intelligence startup, xAI, as the merged entity gears up for a massive IPO. The deal was announced on Monday in a blog post from Musk, who said he’s forming “the most ambitious, vertically-integrated innovation engine on (and off) Earth, with AI, rockets, space-based internet,” and the X social media platform. The combined company is expected to price shares in an IPO that would value it at $1.25 trillion, Bloomberg reported. Public records with the state of Nevada, obtained by CNBC, indicate that the deal was completed on Feb. 2, with Space Exploration Technologies Corp. listed as the “managing member” of X.AI Holdings. The transaction marks the largest tie-up in Musk’s vast business portfolio and brings together two companies that have been soaring in value on the private markets

Full report : If assumptions hold, SpaceX-xAI could own a full stack of capabilities, from launch to orbital bandwidth to frontier AI models, and offer AI on demand anywhere.