xAI
“Can Elon Musk's AI lab become the dominant foundation-model infrastructure layer by combining frontier LLMs, social-network distribution via X, and now SpaceX's compute and capital resources?”
Founded in March 2023 as an independent AI research lab by Elon Musk to build a 'truth-seeking' alternative to OpenAI, xAI launched Grok as its flagship LLM integrated into the X social network. In March 2025 it merged with X Corp under X.AI Holdings Corp, consolidating Musk's AI and social media assets into a single entity. By February 2026 the combined company was acquired by SpaceX at a $250B valuation and rebranded as SpaceXAI, transforming from a standalone AI lab into a SpaceX subsidiary operating one of the world's largest AI infrastructure clusters (Colossus) and a commercial API business. The August 2026 acquisition of Cursor signals an expansion into AI-assisted developer tooling.