SpaceX completed its acquisition of xAI in February 2026 at a combined valuation of $1.25 trillion, according to Techub, citing CryptoBriefing. After the merged company went public in June, its valuation rose to between $1.5 trillion and $1.77 trillion. That jump has split investors over the company’s AI push.
Some analysts are focused on the size of the valuation and the losses reported by both businesses. In 2025, xAI posted an operating loss of about $6.36 billion on revenue of just $3.2 billion. SpaceX, for its part, generated roughly $4.69 billion in revenue in the first quarter of 2026, but still recorded an operating loss of $1.94 billion.
Analysts cited in the report warned that the company could face value destruction if its AI investments fail to produce results. They also questioned whether Elon Musk can effectively manage several companies at the same time while overseeing an expansion strategy of this scale. The report presents the debate as one centered on valuation, losses and execution risk rather than a settled view on the merger’s prospects.
SpaceX completed its acquisition of xAI in February 2026, giving the combined company a valuation of $1.25 trillion, according to Techub, citing CryptoBriefing. After its June IPO, that valuation climbed to a range of $1.5 trillion to $1.77 trillion.
Investors split over the AI pivot
The report says investors are divided on the company’s move toward AI. Some analysts have raised concerns about the valuation and the risks tied to ongoing losses.
Losses and revenue remain under scrutiny
xAI recorded an operating loss of about $6.36 billion in 2025, with revenue of only $3.2 billion. In the first quarter of 2026, SpaceX reported about $4.69 billion in revenue, but its operating loss reached $1.94 billion.
Analysts warn of execution and valuation risk
According to CryptoBriefing, analysts warned that the company could face value destruction if its AI investment does not pay off. They also questioned Musk’s ability to run multiple companies at the same time.
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