Elon Musk just pulled off the largest merger in history.

SpaceX has acquired xAI in a record-setting $1.25 trillion deal, valuing SpaceX at $1 trillion and xAI at $250 billion.

Let that sink in.

This isn’t just another tech acquisition.

It instantly creates the most powerful vertically integrated technology company ever assembled – combining rockets, satellites, AI, communications, and data infrastructure under one roof.

If you’ve been reading The Million Mission, this shouldn’t surprise you.

Because just days ago, I argued that Elon doesn’t think in terms of separate companies.

He thinks in terms of one long-term mission: to maximize the future of civilization and extend consciousness beyond Earth.

This deal proves it.

And ironically, this deal makes the idea of an eventual Tesla-SpaceX merger even more likely.

Details on the SpaceX-xAI Mega-Deal

On paper, SpaceX is a rocket company and xAI is an AI company.

In reality, both are trying to solve the same problem: how to scale intelligence and civilization beyond Earth.

Today, AI development depends on massive data centers on Earth.

Those data centers consume enormous amounts of electricity and require huge cooling infrastructure.

Power demand from AI alone is already straining energy grids.

According to SpaceX’s announcement, this simply won’t scale on Earth.

The long-term solution? Move compute off-planet.

SpaceX and xAI’s vision is to launch massive constellations of satellites that function as orbital data centers, powered by near-constant solar energy in space.

No land constraints. No cooling constraints. Vast power availability.

In Elon’s words: “It’s always sunny in space.”

Starship becomes the delivery vehicle. xAI becomes the intelligence layer. Starlink provides connectivity. And eventually, compute moves off Earth entirely.

It sounds insane.

Then again, reusable rockets once sounded insane too.

All of this is happening just months before what is expected to be a blockbuster SpaceX IPO later this year.

Folding xAI into SpaceX before going public complicates the story for investors a bit:

SpaceX is no longer just a launch and satellite company. It becomes:

• Launch infrastructure

• Global satellite internet

• Direct-to-device communications

• AI compute infrastructure

• A social media company

All inside one entity.

The narrative becomes much bigger. And the valuation likely follows.

About That Tesla Merger…

I previously hypothesized that SpaceX might eventually merge with Tesla.

Let me be clear.

This new deal doesn’t kill that idea.

It strengthens it.

Look at what has already happened:

SolarCity → acquired by Tesla

Twitter/X → acquired by xAI

xAI → acquired by SpaceX

All of Elon’s companies share technology, talent, and even board members.

These companies already operate as one ecosystem.

Merging SpaceX and Tesla would simply mean the ownership structure reflecting the operational reality.

And remember Elon’s incentives:

• He wants control.

• He wants to hit massive valuation targets tied to Tesla.

• He wants his companies aligned toward one mission.

A future consolidation under a single public vehicle is still very much on the table.

Maybe not tomorrow. But eventually.

Should You Buy Tesla?

Big Elon headlines usually send investors straight to Tesla.

But I’ve never been a fan of Tesla due to valuation reasons.

The stock trades at sky-high 400x earnings multiple even as revenue in its core auto business is declining.

So instead of chasing Tesla, I prefer looking at companies that quietly benefit from Musk’s expanding ecosystem without carrying Tesla’s valuation risk.

One interesting example is EchoStar (SATS).

Last year, EchoStar sold valuable wireless spectrum licenses to SpaceX in two separate deals.

Spectrum – the invisible lanes wireless networks run on – is one of the most valuable assets in telecom because supply is limited and demand keeps growing.

In exchange, EchoStar received roughly $11 billion worth of SpaceX stock.

That means EchoStar now owns a meaningful stake in what is becoming one of the most powerful technology platforms on Earth… and in orbit.

Alphabet (GOOG) is another quiet winner.

Alphabet owns Gemini, one of the leading AI platforms.

It also owns roughly 14% of Anthropic, creator of Claude.

And Alphabet holds about a 7% stake in SpaceX – which now includes xAI after this merger.

In other words, while tech giants race to build the most powerful AI systems, Alphabet already has exposure to several of the leading contenders.

It benefits no matter which ecosystem ultimately leads.

And for investors, that’s a cleaner way to gain exposure to this AI and space buildout without paying Tesla prices.

The Bigger Picture

Step back and look at the pattern: Elon isn’t building separate companies.

He’s assembling pieces of one long-term machine – rockets, AI, energy, connectivity, and autonomy all feeding into each other.

The SpaceX–xAI merger is just the latest proof that his companies are moving closer together, not further apart.

And while an eventual Tesla-SpaceX merger may still sound far-fetched…

Remember who we’re talking about.

This is the guy who:

• Made rockets reusable

• Made EVs mainstream

• Built global satellite internet

• Pushed autonomy into reality

• Put brain implants into humans

Don’t bet against Elon.