XAI executives may take cash in SpaceX deal, source says

SpaceX and xAI have agreed on a share exchange ratio of 0.1433 SpaceX shares for each xAI share, according to a source familiar with the matter.

The deal involves SpaceX’s acquisition of Elon Musk’s artificial intelligence company.

Some xAI executives may choose to receive cash instead of stock, at a rate of US$75.5 per xAI share.

The transaction reflects the companies’ ongoing integration, with details confirmed by a source close to the negotiations.

The deal’s financial specifics and the implications for shareholders are not publicly detailed.

The agreement was reported on February 2, 2026.

🔗 Source: Reuters

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The terms under discussion include swapping 0.1433 SpaceX shares for each xAI share, according to a source familiar with the matter. Some xAI executives could take cash instead at US$75.5 per xAI share, while more financial details for SpaceX and xAI shareholders remain private.
Reuters said SpaceX and xAI have discussed a possible merger ahead of a planned initial public offering (IPO). SpaceX was most recently valued at about $800 billion in a private share sale, while xAI was valued at $230 billion in November, according to the Wall Street Journal 1.
The stated aim involves orbital data centers, computer facilities in space that house servers and networking equipment. Musk said this could make space “the lowest cost place to put AI” within two to three years 2.

The move would fit Musk’s history of bringing his businesses together, including Tesla’s acquisition of SolarCity in 2016 and xAI’s acquisition of X last year 3.
Corporate filings tie the companies’ money flows together, with Tesla disclosing an agreement to invest about $2 billion in xAI. Those filings also say xAI bought Tesla’s Megapack batteries (large grid-scale energy storage systems) 3.
Analysts cited by Reuters said a combined SpaceX and xAI could pair launch capacity with software, which may help in competing for U.S. defense contracts. Reuters also cited xAI’s Pentagon contract worth up to $200 million 2.