Did you see the information yesterday?
Elon Musk introduced that SpaceX is buying xAI.
This deal — the most important M&A transaction in historical past — brings collectively rockets, satellites, billions in money move from Starlink, and AI.
The mixed entity is a guess that space-based computing will resolve AI’s vitality and scale constraints. It additionally cements SpaceX’s place as probably the most beneficial 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 begin with, congratulations to everybody who discovered about xAI by means of Crowdability and adopted our suggestion to spend money on it.
Traders in xAI will obtain SpaceX inventory. And when SpaceX goes public, we anticipate they’ll pocket extraordinary beneficial properties — many, many occasions their cash.
Now let’s flip our consideration to SpaceX.
SpaceX Has Been a Profitable 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 grew to become an increasing number of profitable — and an increasing number of beneficial. Its valuation grew from $10 billion, to $50 billion, to $200 billion. And because it hadn’t gone public, I continued to jot down about it.
Properly, right here we’re in 2026. As of right now, SpaceX is now valued at $1.25 trillion. And it not too long ago introduced that it’s focusing on an IPO this 12 months that can worth it at $1.5 trillion.
To make an extended story brief, anybody who adopted me into SpaceX has already carried out very effectively. Relying on once they bought their shares, traders may very well 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 Firms in One
For informal observers, SpaceX is synonymous with rockets. Is sensible. It’s turn into the go-to firm to launch something into House.
And simply take a look at its income development:
This chart reveals its revenues by means of 2023. As you’ll be able to see, it was rising quick.
However that was simply the beginning. In response to 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 every of 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, wherever, can use Elon’s web service.
As of January 2026, Starlink had signed up 9 million clients in 150 nations. That’s up from 7 million clients in August 2025, and eight million in November 2025.
Simply think about how a lot SpaceX may very well be price when a lot of the world ditches its sluggish, unreliable web, and begins utilizing Starlink. The corporate is already touchdown contracts with main governments, airways, and extra not too long ago, smartphone makers. In truth, Starlink expects to have the ability to present service for smartphone customers in 2027.
This explains why Starlink may generate actually billions of {dollars} in money move for SpaceX, 12 months after 12 months.
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 may know that knowledge facilities have out of the blue turn into central to every thing. They sit on the intersection of Synthetic Intelligence, vitality, geopolitics, and financial development — and so they’ve become a vital asset.
From an funding perspective, knowledge facilities are among the finest 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 attributable to 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 below are the High 5 the explanation why constructing knowledge facilities in area may make a lot sense — generally, and particularly for SpaceX.
1. Almost Limitless Photo voltaic Energy
Energy and cooling are the 2 largest working prices for AI knowledge facilities.
However in orbit, photo voltaic panels get steady, unobstructed daylight. This dramatically reduces one in every of Earth-based knowledge facilities’ largest constraints: vitality value and grid capability. Moreover, cooling will be carried out with radiative cooling into area, somewhat than with energy-hungry chillers.
2. Lowered Terrestrial Constraints
House-based knowledge facilities keep away from challenges equivalent to 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 world purposes — for instance, satellite tv for pc networks, Earth remark, protection & intelligence, or communications routing — orbital compute will be quicker. 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 tougher to assault, doubtlessly agnostic to jurisdiction, and engaging for army, intelligence, and nationwide safety workloads. This alone may justify early deployments — even when the economics are marginal at first.
5. Starship Modifications the Math
Traditionally, the concept 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 beneficial non-public startup in historical past — and if its success continues, it’d turn into probably the most beneficial public firm in historical past.
In any case, as Musk famously mentioned in 2023, “I’ve by no means misplaced cash for many who spend money on me and I’m not beginning now.”
For traders, SpaceX has been a wild, joyful trip — and now the journey continues!
Glad Investing,
Greatest Regards,
Founder
Crowdability.com