SpaceX Acquires xAI for $250 Billion — The Largest Merger in History, Then Loses Every Co-Founder

SpaceX acquired Elon Musk's xAI in February 2026 for $250 billion, creating a $1.25 trillion combined entity — the largest corporate merger by valuation in history. The deal is structured around 'orbital data centers' that integrate Grok AI into Starlink's satellite network. But within weeks, all 11 original xAI co-founders departed. Musk acknowledged xAI 'wasn't built right' and announced a full rebuild. In April, SpaceX filed confidentially for a $1.75 trillion IPO targeting $75 billion — the largest public offering ever attempted. Musk is also requiring IPO banks to purchase Grok subscriptions. This analysis covers the merger structure, the co-founder exodus, xAI's market position (17.8% US chatbot share, $2B projected 2026 revenue), the IPO filing, and the honest limitations of every claim.