Elon Musk to Merge SpaceX, xAI in $1.25 Trillion Deal

Good morning. Elon Musk is merging SpaceX and xAI in an all-stock deal. France passes a 2026 budget. Donald Trump seeks $1 billion from Harvard. And Nigel Farage’s popularity faces its first big test in Scotland. Listen to the day’s top stories.

Elon Musk, CEO of SpaceX and xAI, is combining the companies in an all-stock deal. The merged entity will be valued at $1.25 trillion, with SpaceX valued at $1 trillion, people familiar said. The move fuels Musk’s ambitions in artificial intelligence and space, while SpaceX still plans an initial public offering later this year. A potential merger raises uncertainty for EchoStar, as Wall Street questions the value of its $19.6 billion spectrum stake and xAI’s cash-burning prospects.