SpaceX, the space company led by Elon Musk, has officially acquired its AI startup xAI, setting a record valuation of $1.25 trillion and becoming the largest corporate merger in history. This move not only redefines the vision of integrating space and AI, but also brings unimaginable potential benefits to the creditors of the bankrupt cryptocurrency exchange FTX.
SpaceX's valuation surges past $1 trillion
According to reports from Bloomberg, Reuters, and other media outlets, SpaceX's standalone valuation in this all-stock transaction is approximately $1 trillion, while xAI's is $250 billion. The merged group will combine SpaceX's rockets, Starlink, and space infrastructure capabilities with xAI's AI technology, including the Grok chatbot and other AI assets (xAI also acquired the social platform X in 2025).
Musk stated that this integration will create "the most ambitious vertically integrated innovation engine on and off the planet," and even plans to establish an AI data center in space to bypass terrestrial energy limitations.
With its IPO imminent, SpaceX is poised to break its all-time fundraising record.
This acquisition comes as SpaceX is reportedly planning its initial public offering (IPO) in mid-2026. Market analysts predict that the IPO could raise tens of billions of dollars, with a valuation exceeding $1.5 trillion, making it one of the world's most valuable publicly traded companies ever.
This news has sparked widespread discussion in the market, and even Musk's social media platform X has been updated, such as adding a rocket animation like effect, indicating that the overall brand integration has quietly begun.
FTX's unexpected turnaround: From a $190 million investment to billions in assets.
This record-breaking deal could be one of the most dramatic turnarounds in history for the creditors of the bankrupt crypto exchage FTX.
According to reports, FTX acquired a stake in SpaceX in 2025 through a settlement agreement with venture capital firm K5 Global. At that time, SpaceX was valued at approximately $80 billion, and FTX's investment was approximately $190 million. Now, with SpaceX's valuation rising to $1 trillion, that stake is theoretically worth $2.4 billion.
Although the actual value of these shares will be reduced by approximately 23% to 25% after several rounds of capital increases, they remain one of the assets with the greatest growth potential in the hands of FTX creditors.
Creditors regain hope: Recovery rate may exceed 118%
FTX's liquidation team has been releasing positive news in recent months, with multiple statements indicating that some creditors who filed claims in November 2022 are expected to receive more than 118% of their assets back. This is extremely rare in bankruptcy cases, almost equivalent to a "making money out of a loss" scenario.
This merger with SpaceX further strengthens the recovery prospects. Market observers believe that this deal not only adds an important piece to Musk's corporate puzzle, but also unexpectedly creates the "most incredible wave of recovery" for FTX's creditors.
Regulatory concerns remain
While the merger is seen by the market as a "mega-technology consolidation" for the next decade, Musk's multiple roles—controlling SpaceX, xAI, and Platform X—have raised concerns among some regulatory agencies. Potential governance structures and conflicts of interest may become the focus of subsequent investigations.
This article, "Selecting US Stocks Still Requires SBF! xAI Merges into SpaceX, Valuation Soars to Over $1.25 Trillion, FTX Creditors Receive Huge Returns," first appeared on ABMedia ABMedia .
