# xAI **Type:** AI research company **Founded:** 2023 **Founder:** Elon Musk **Status:** Acquired by SpaceX February 2, 2026 **Valuation at acquisition:** ~$250 billion ## Overview xAI is Elon Musk's AI venture focused on developing large language models and AI training infrastructure. Primary product is Grok, a conversational AI model. The company was acquired by SpaceX in February 2026 as part of a strategy to vertically integrate AI infrastructure from launch through orbital compute to model deployment. ## Products - **Grok:** Large language model and conversational AI - **AI training infrastructure:** Compute and model development capabilities ## Strategic Position xAI's acquisition by SpaceX creates vertical integration across: - Launch infrastructure (SpaceX/Starship) - Connectivity (Starlink) - AI models (xAI/Grok) - Planned orbital compute (SpaceX FCC filing) The merger enables captive demand for SpaceX's orbital data center infrastructure through xAI's AI training and inference needs. ## Timeline - **2023** — xAI founded by Elon Musk - **2026-02-02** — Acquired by SpaceX in all-stock merger, valuation ~$250 billion ## Sources - SpaceNews, CNBC (February 2026)