SpaceX Acquires xAI in Blockbuster Merger — Musk Unifies Space + AI + X Into a $1.25T Private Giant to Pursue “Space-Based Data Centers”
Elon Musk’s SpaceX has officially acquired/merged with xAI, consolidating Musk’s two largest private businesses into a single mega‑company that also encompasses X (formerly Twitter), which xAI previously acquired in 2025. Multiple outlets report the tie‑up values SpaceX at ~$1T and xAI at ~$250B, for a combined valuation around $1.25T. Musk and SpaceX frame the rationale around an ambitious plan to build space-based AI data centers to address power and cooling constraints on Earth—an idea he has been promoting more aggressively in recent months.
Elon Musk's xAI Reboots "Dojo3" Supercomputer Project — Building the Most Powerful AI Training Infrastructure
Elon Musk's xAI has announced the restart of the Dojo3 supercomputer project, signaling an ambitious push to build one of the world's most powerful AI training infrastructures. This strategic move combines Tesla's Dojo legacy with xAI's frontier AI ambitions, positioning the company to compete with OpenAI, Google, and Meta in the compute arms race.
xAI Switches On Colossus 2: The 1GW AI Supercomputer Redefines Scale
Elon Musk's xAI has powered up Colossus 2, a next-generation AI supercomputer with a staggering 1 gigawatt (GW) power capacity. Built in partnership with Oracle, this facility marks a new frontier in computational scale, designed to train the future generations of multimodal and reasoning AI models like the upcoming "Grok-3."
Pentagon Partners with xAI: Grok Models to Power GenAI.mil Starting Early 2026, Arming 3 Million Personnel with Frontier AI
The U.S. Department of Defense announced on December 22, 2025 a landmark agreement with Elon Musk's xAI to integrate the Grok family of models into GenAI.mil — the Pentagon's bespoke generative AI platform. This move follows Google's Gemini rollout earlier this month and will enable secure, IL5-certified access to advanced AI for all 3 million military and civilian personnel, including real-time insights from the X platform. Initial deployment targets early 2026, accelerating AI adoption from administrative workflows to mission-critical operations.
The Silent Power Shift: xAI's Grok 4.1 Emerges, Claiming Unprecedented General-Purpose Prowess
In a move that caught the AI community off guard, Elon Musk's xAI has quietly released Grok-4.1, the latest iteration of its flagship large language model. Unlike the fanfare surrounding its rivals' releases, this launch was subdued, yet its claimed capabilities are anything but. xAI asserts that Grok-4.1 demonstrates "state-of-the-art" performance across a comprehensive range of general-purpose benchmarks—from reasoning and coding to advanced mathematics—potentially surpassing established leaders like GPT-4o, Claude 3.5, and Gemini 2.0 in overall versatility and raw intellectual horsepower. This release marks a critical inflection point, challenging the perceived hierarchy of the frontier model race.
