Did you see the information yesterday?
Elon Musk introduced that SpaceX is buying xAI.
This deal — the biggest M&A transaction in historical past — brings collectively rockets, satellites, billions in money stream from Starlink, and AI.
The mixed entity is a wager that space-based computing will resolve AI’s vitality and scale constraints. It additionally cements SpaceX’s place as probably the most invaluable non-public startup available in the market, and creates much more pleasure round its IPO.
Now let’s see what this deal means for you.
Congratulations!
To start with, congratulations to everybody who discovered about xAI by means of Crowdability and adopted our advice to put money into it.
Buyers in xAI will obtain SpaceX inventory. And when SpaceX goes public, we count on they’ll pocket extraordinary beneficial properties — many, many instances their cash.
Now let’s flip our consideration to SpaceX.
SpaceX Has Been a Successful Funding So Far…
I began telling my readers about SpaceX in 2014.
On the time, it was valued at about $10 billion. For a personal startup, particularly again in 2014, a multi-billion-dollar valuation like this was outrageously excessive.
However through the years, SpaceX simply turned increasingly profitable — and increasingly invaluable. Its valuation grew from $10 billion, to $50 billion, to $200 billion. And because it hadn’t gone public, I continued to put in writing about it.
Nicely, right here we’re in 2026. As of in the present day, SpaceX is now valued at $1.25 trillion. And it lately introduced that it’s concentrating on an IPO this yr that may worth it at $1.5 trillion.
To make a protracted story brief, anybody who adopted me into SpaceX has already performed very effectively. Relying on once they bought their shares, buyers might be sitting on unrealized — and even realized — beneficial properties of 3x, 5x, even 80x or extra.
The factor is, the SpaceX story isn’t over but. Let me clarify.
SpaceX: Three Corporations in One
For informal observers, SpaceX is synonymous with rockets. Is smart. It’s turn out to be the go-to firm to launch something into House.
And simply have a look at its income development:
This chart exhibits its revenues by means of 2023. As you may see, it was rising quick.
However that was simply the beginning. In keeping with Morgan Stanley, its 2026 revenues are anticipated to hit $20 billion, and by 2040, they’re anticipated to hit $100 billion.
The factor is, these revenues aren’t simply coming from SpaceX’s rocket enterprise. The corporate additionally has a second enterprise: Starlink, a space-based web service.
House-industry analysts name Starlink “nothing in need of mindblowing.” Right here’s the way it works. Each time Elon launches one in all his rockets, even when it is on behalf of NASA, he stows away satellites for Starlink on board. Because the rocket enters area, dozens of those refrigerator-sized Starlink satellites break off and are deployed.
These satellites can beam the web all the way down to Earth, even to probably the most distant jungles and mountain tops. So anybody, anyplace, can use Elon’s web service.
As of January 2026, Starlink had signed up 9 million prospects in 150 international locations. That’s up from 7 million prospects in August 2025, and eight million in November 2025.
Simply think about how a lot SpaceX might be price when a lot of the world ditches its gradual, unreliable web, and begins utilizing Starlink. The corporate is already touchdown contracts with main governments, airways, and extra lately, smartphone makers. In reality, Starlink expects to have the ability to present service for smartphone customers in 2027.
This explains why Starlink might generate actually billions of {dollars} in money stream for SpaceX, yr after yr.
However now, with its acquisition of xAI, SpaceX is exploring a 3rd enterprise: space-based knowledge facilities.
In case you’ve been following the information, you would possibly know that knowledge facilities have instantly turn out to be central to every part. They sit on the intersection of Synthetic Intelligence, vitality, geopolitics, and financial development — they usually’ve became a important asset.
From an funding perspective, knowledge facilities are probably the greatest property on the planet. They function such traits as:
- Lengthy-term contracts from 10 to twenty years
- Funding-grade tenants together with Huge Tech
- Inflation-linked pricing
- Excessive switching-costs
- Shortage resulting from energy constraints
These traits clarify why non-public fairness is diving into the chance, and why knowledge facilities are being valued extra like monopolistic utilities than actual property.
This additionally explains why, with xAI now “on board,” SpaceX is leaping into this sector.
Listed here are the Prime 5 the reason why constructing knowledge facilities in area would possibly make a lot sense — generally, and particularly for SpaceX.
1. Almost Limitless Photo voltaic Energy
Energy and cooling are the 2 greatest working prices for AI knowledge facilities.
However in orbit, photo voltaic panels get steady, unobstructed daylight. This dramatically reduces one in all Earth-based knowledge facilities’ greatest constraints: vitality value and grid capability. Moreover, cooling might be performed with radiative cooling into area, fairly than with energy-hungry chillers.
2. Lowered Terrestrial Constraints
House-based knowledge facilities keep away from challenges resembling land acquisition, zoning fights, and water utilization, which is a rising political difficulty for AI knowledge facilities.
3. Extremely-Low Latency
For space-native or international purposes — for instance, satellite tv for pc networks, Earth statement, protection & intelligence, or communications routing — orbital compute might be sooner. Why? As a result of it allows computing to happen the place the information is already.
4. Strategic and Protection Benefits
House-based knowledge facilities are bodily more durable to assault, doubtlessly agnostic to jurisdiction, and engaging for navy, intelligence, and nationwide safety workloads. This alone might justify early deployments — even when the economics are marginal at first.
5. Starship Modifications the Math
Traditionally, the thought of space-based knowledge facilities was impractical as a result of launch prices have been prohibitive. However SpaceX’s Starship can change the mathematics. It has large payload capability, it’s reusable, and marginal launch-cost drops dramatically.
The Journey Continues!
SpaceX is probably the most invaluable non-public startup in historical past — and if its success continues, it would turn out to be probably the most invaluable public firm in historical past.
In spite of everything, as Musk famously stated in 2023, “I’ve by no means misplaced cash for individuals who put money into me and I’m not beginning now.”
For buyers, SpaceX has been a wild, joyful journey — and now the journey continues!
Completely happy Investing,
Finest Regards,
Founder
Crowdability.com
