Elon Musk merges xAI into SpaceX; co-founders depart; valuations at $1T and $250B

Elon Musk reorganized xAI and folded it into SpaceX in an all-stock deal valuing SpaceX at $1 trillion and xAI at $250 billion. Co-founders Jimmy Ba and Tony Wu left earlier this week, while regulators in the U.S., Europe, and Asia are investigating Grok's explicit deepfake output. SpaceX aims to list later this year, with the IPO potentially reaching $1.5 trillion, according to Bloomberg.