xAI will be dissolved as a separate company. It will become part of SpaceX — Mask

The artificial intelligence company xAI will cease to exist as a separate organization. 

This was announced by Ilon Mask on the social network X.

Instead, xAI will be transformed into the SpaceXAI division, which will consolidate all artificial intelligence products on behalf of SpaceX.

«xAI will be disbanded as a separate company, so it will simply be SpaceXAI, AI products from SpaceX», — noted Mask.

Under the xAI brand, the company developed the chatbot Grok and its own AI models. 

More about the merger of xAI and SpaceX

At the end of January 2026, Ilon Mask was considering options for a potential merger of SpaceX with carmaker Tesla or the AI startup xAI amid preparations for a large IPO.  Investors in the companies were promoting this idea. 

The argument was that Mask’s various businesses could complement each other if combined. For example, SpaceX plans to deploy orbital data centers for heavy computations, which could be an advantage for the development of xAI’s artificial intelligence.

Already in early February, SpaceX announced the acquisition of the startup xAI. The goal of the deal was to create a vertically integrated structure that would unite AI development, rocket technologies, the Starlink satellite internet, and the X (Twitter) platform. The merger deal was valued at $250 billion

Recall that in February 2026 exactly half of the co-founders of xAI left the company.

Analysts link the reasons for the mass departure of specialists to the combination of an extremely high pace of work, internal political disputes, and reputational crises surrounding the flagship product. The latest scandal involving the chatbot Grok, related to its unrestricted generation of pornographic deepfakes, led to legal consequences and investigations by regulators.

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