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 circulation from Starlink, and AI.
The mixed entity is a wager that space-based computing will resolve AI’s power and scale constraints. It additionally cements SpaceX’s place as probably the most priceless personal startup available in the market, and creates much more pleasure round its IPO.
Now let’s see what this deal means for you.
Congratulations!
Initially, congratulations to everybody who realized about xAI by way of Crowdability and adopted our advice to spend money on it.
Buyers in xAI will obtain SpaceX inventory. And when SpaceX goes public, we count on they’ll pocket extraordinary positive factors — many, many instances 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 over time, SpaceX simply grew to become an increasing number of profitable — and an increasing number of priceless. 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.
Effectively, right here we’re in 2026. As of immediately, SpaceX is now valued at $1.25 trillion. And it not too long ago introduced that it’s concentrating on an IPO this yr that may worth it at $1.5 trillion.
To make an extended story quick, anybody who adopted me into SpaceX has already finished very nicely. Relying on after they acquired their shares, traders could possibly be sitting on unrealized — and even realized — positive factors 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 smart. It’s turn out to be the go-to firm to launch something into Area.
And simply have a look at its income development:
This chart exhibits its revenues by way of 2023. As you may 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.
Area-industry analysts name Starlink “nothing wanting 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 right 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 international locations. That’s up from 7 million clients in August 2025, and eight million in November 2025.
Simply think about how a lot SpaceX could possibly 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 might generate actually billions of {dollars} in money circulation for SpaceX, yr after yr.
However now, with its acquisition of xAI, SpaceX is exploring a 3rd enterprise: space-based information facilities.
In the event you’ve been following the information, you would possibly know that information facilities have all of a sudden turn out to be central to every little thing. They sit on the intersection of Synthetic Intelligence, power, geopolitics, and financial development — they usually’ve became a essential asset.
From an funding perspective, information facilities are top-of-the-line property on the planet. They characteristic such traits as:
- Lengthy-term contracts from 10 to twenty years
- Funding-grade tenants together with Large Tech
- Inflation-linked pricing
- Excessive switching-costs
- Shortage resulting from energy constraints
These traits clarify why personal fairness is diving into the chance, and why information 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 Prime 5 the reason why constructing information facilities in area would possibly make a lot sense — normally, and particularly for SpaceX.
1. Almost Limitless Photo voltaic Energy
Energy and cooling are the 2 largest working prices for AI information facilities.
However in orbit, photo voltaic panels get steady, unobstructed daylight. This dramatically reduces one in every of Earth-based information facilities’ largest constraints: power value and grid capability. Moreover, cooling could be finished with radiative cooling into area, moderately than with energy-hungry chillers.
2. Lowered Terrestrial Constraints
Area-based information facilities keep away from challenges reminiscent of land acquisition, zoning fights, and water utilization, which is a rising political subject for AI information facilities.
3. Extremely-Low Latency
For space-native or world purposes — for instance, satellite tv for pc networks, Earth commentary, protection & intelligence, or communications routing — orbital compute could be sooner. Why? As a result of it permits computing to happen the place the information is already.
4. Strategic and Protection Benefits
Area-based information facilities are bodily more durable to assault, probably agnostic to jurisdiction, and enticing for army, intelligence, and nationwide safety workloads. This alone might justify early deployments — even when the economics are marginal at first.
5. Starship Adjustments the Math
Traditionally, the concept of space-based information facilities was impractical as a result of launch prices have been prohibitive. However SpaceX’s Starship can change the maths. It has large payload capability, it’s reusable, and marginal launch-cost drops dramatically.
The Journey Continues!
SpaceX is probably the most priceless personal startup in historical past — and if its success continues, it would turn out to be probably the most priceless public firm in historical past.
In spite of everything, as Musk famously mentioned in 2023, “I’ve by no means misplaced cash for individuals who spend money on me and I’m not beginning now.”
For traders, SpaceX has been a wild, joyful journey — and now the journey continues!
Completely satisfied Investing,
Finest Regards,
Founder
Crowdability.com
