xAI Dissolved: Elon Musk Folds AI Into SpaceXAI Division

The End of xAI as an Independent Company

On May 6, 2026, Elon Musk confirmed via X that xAI will be dissolved as a separate company, and it will just be SpaceXAI, the AI products from SpaceX. The announcement formalizes the integration of Grok and X AI capabilities under SpaceX new AI division.

Background: The $1.25 Trillion Merger

The dissolution follows the completion of SpaceX acquisition of xAI, a deal valuing the combined entity at $1.25 trillion (SpaceX at $1 trillion; xAI at $250 billion). Musk cited orbital data centers as a key strategic rationale for the merger, combining xAI AI research with SpaceX infrastructure ambitions.

SpaceXAI Role

Under the new structure, Grok will be developed within SpaceXAI, SpaceX dedicated AI division. Musk noted that, much like SpaceX provides launch services to competitors, SpaceXAI intends to supply compute resources to AI companies taking the right steps to ensure AI is beneficial for humanity.

The Anthropic Paradox

The announcement came hours after Anthropic signed a deal to use all compute capacity at SpaceX Colossus 1 data center (220,000+ NVIDIA GPUs). A fierce critic turning compute provider underscores the pragmatic dynamics reshaping the AI infrastructure race.