Elon Musk, the world's richest person, continues to reshape industries from space exploration to artificial intelligence, with his recent acquisition of xAI by SpaceX marking one of the most significant corporate consolidations in history.

Elon Musk Says SpaceX-xAI Merger Will Form ' Most Ambitious'

The February 2026 merger, which valued the combined entity at $1.25 trillion — SpaceX at $1 trillion and xAI at $250 billion — has positioned Musk's ventures as a vertically integrated powerhouse spanning rockets, satellites, AI development, and social media through X (formerly Twitter). Musk described the move in a SpaceX blog post as creating "the most ambitious, vertically-integrated innovation engine on (and off) Earth," with plans to deploy AI data centers in orbit powered by limitless solar energy and Starlink connectivity.

The deal comes amid Musk's push to overcome terrestrial constraints on AI compute, including energy shortages, regulatory hurdles, and land limitations. Experts have expressed skepticism about the feasibility of orbital data centers due to launch costs, radiation risks, latency issues, and maintenance challenges, but Musk has doubled down, stating in recent comments that SpaceX is shifting focus toward building a "self-growing city" on the moon within the next decade.

Musk's net worth, estimated by Forbes at around $845 billion to nearing $900 billion as of late February 2026, edges closer to trillionaire status, driven largely by SpaceX's valuation surge and Tesla's ongoing role in the electric vehicle and autonomy markets. A new Oxfam analysis highlighted Tesla's contribution to U.S. inequality as a factor in Musk's wealth accumulation, noting his extreme fortune amid broader economic disparities.

Tesla faces headwinds, including a first-ever annual revenue decline reported earlier in 2026 and a federal judge's decision upholding a $243 million verdict in a fatal Autopilot crash case from 2019. Despite these, Musk has teased advancements in Full Self-Driving software, including upcoming voice commands, and progress on the Cybercab robotaxi. He recently claimed Tesla has "solved" dry electrode manufacturing, a key hurdle for next-generation batteries.

In AI, Musk's xAI — now under the SpaceX umbrella — continues developing Grok, facing scrutiny from regulators. The European Union launched probes into Grok's features over deepfake capabilities, including nonconsensual undressing images, while U.S. House Democrats opened an investigation into similar concerns on X. Musk has countered criticisms, including accusing rival Anthropic of large-scale data theft for training its Claude model, sharing Community Notes alleging a $1.5 billion settlement over pirated books.

Musk's political influence remains prominent. He has advocated for stricter election laws, endorsing the SAVE Act with photo ID requirements ahead of the 2026 midterms, warning that without it, democracy could end. On X, he frequently comments on Senate proceedings, criticizing delays on voter integrity bills and mocking what he called a "dog parade" in the chamber instead of legislative action.

Other ventures show momentum. The Boring Company is tunneling simultaneously in Nevada, Texas, and Tennessee at costs reportedly 99% lower than traditional methods, expanding projects like the Vegas Loop and Nashville Music City Loop. Neuralink's brain-computer interface work has inspired a surge in similar efforts in China.

Musk's public statements on X often spark controversy. He recently called Mexican President Claudia Sheinbaum a potential "cartel plant" without evidence following a major cartel leader's death, prompting her government to consider legal action. He also reignited his feud with Bill Gates, posting "Karma is real" in response to reports about Gates and linking it to Tesla short sellers, while warning that Tesla's potential dominance could bankrupt even Gates.

In a recent all-hands meeting at xAI, Musk emphasized speed in AI development, massive compute scaling, and future breakthroughs like code-free binary generation. The Pentagon reached a deal to use Grok in classified systems, underscoring xAI's growing role in defense applications.

As Musk's companies intertwine more tightly, questions persist about governance in his sprawling empire, potential conflicts of interest, and the long-term viability of ambitious goals like lunar cities and orbital AI. Yet his track record of defying skeptics — from reusable rockets to mass-market EVs — keeps investors and observers watching closely.

The SpaceX-xAI merger, ahead of a potential SpaceX IPO later in 2026, may redefine how private conglomerates operate in emerging tech frontiers. For now, Musk's focus remains outward — toward the stars, where he sees the future of intelligence unbound by Earth's limits.