xAI has agreed to be acquired by SpaceX in a historic transaction that values xAI at $250 billion.
The combined company will form the most ambitious, vertically-integrated innovation engine on Earth, with AI, rockets, space-based internet, direct-to-mobile device communications and the world’s foremost real-time information and free speech platform.
At $250 billion, SpaceX’s acquisition of xAI is the largest acquisition involving a private target in history.
xAI had a year of breakthrough momentum in 2025, which included the expansion of its data centers—the world's largest AI supercomputers at Colossus I and II—and the launch of Grok 4, Grok Voice and Grok Imagine.
Founded in 2002 to revolutionize space transportation, SpaceX designs, manufactures and launches the world’s most advanced rockets and spacecraft.
The S&C team advising xAI was led by Mike Ringler and Peter Jones and included Taylor Apodaca, Alex Bourdeau, Jean Shen, Daniel Lim and Jarrett Prchal. Isaac Wheeler, Gregg Rader and Jackson Mariotti advised on tax matters. Heather Coleman and Rebecca Rabinowitz advised on executive compensation matters. Alan Fishman advised on securities matters. Renata Hesse, Juan Rodriguez, Kyle Mach and Eric J. Kadel Jr. advised on regulatory matters. Ral Turbeville and Misha Patel advised on real estate matters. Ari Blaut and Dan Loeser advised on financing matters. Mehdi Ansari and Jay Thornton advised on intellectual property matters.
S&C regularly advises clients on their most important and complex technology-driven transactions. Our recent work includes advising xAI in its:
- $113 billion merger with X valuing xAI at $80 billion and X at $33 billion ($45 billion enterprise value less $12 billion of debt);
- $20 billion upsized funding round, which exceeding the $15 billion targeted round size;
- inaugural issuance of $5 billion of debt consisting of floating-rate and fixed rate term loan and secured bonds; and
- $6.5 billion equity financing.