Musk’s AI Startup Is a Payload SpaceX Can’t Afford: Thomas Black

Feb. 4, 2026, 10:30 AM UTC

SpaceX has a big head start on the technology of reusable rockets, which drastically lowered launch costs and helped spawn a commercial space industry that is gaining momentum year by year.

As SpaceX prepares for its huge Starship rocket to enter commercial service, nothing could derail the company from its leadership position — except perhaps a truly bad decision to chain a financial anchor around SpaceX’s neck. That looks to be the case with Elon Musk’s surprise move to tuck xAI, his cash-gulping AI startup, under SpaceX.

The combination has an eye-popping value of $1.25 trillion, with SpaceX accounting for $1 ...

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