Space stocks gain following $1.25B trillion SpaceX-xAI merger

Investing.com -- Space stocks climbed Tuesday following Elon Musk's announcement of a merger between SpaceX and xAI, valuing the combined company at $1.25 trillion.

The deal represents a significant push to expand artificial intelligence infrastructure beyond Earth, with Musk stating that the most cost-effective way to generate AI computing power will be in space within two to three years as major technology companies pursue artificial general intelligence.

In premarket trading, Rocket Lab shares rose 3.6%, Planet Labs increased 3.3%, and AST SpaceMobile gained 2.5%. Other space-related stocks also moved higher, with Intuitive Machines up 1.9% and Redwire climbing 4.9%.

On Monday, Musk described the merger as creating a "vertically integrated and ambitious innovation powerhouse" that would combine artificial intelligence, rocket technology, space-based internet services, direct-to-mobile communications, and a platform for real-time information and free speech.

The deal comes as Musk positions the combined entity to compete in the race toward artificial general intelligence, a theoretical milestone where machines could surpass human thinking capabilities.

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