Did you see the news yesterday?
Elon Musk announced that SpaceX is acquiring xAI.
This deal — the largest M&A transaction in history — brings together rockets, satellites, billions in cash flow from Starlink, and AI.
The combined entity is a bet that space-based computing will solve AI’s energy and scale constraints. It also cements SpaceX’s position as the most valuable private startup in the market, and creates even more excitement around its IPO.
Now let’s see what this deal means for you.
Congratulations!
First of all, congratulations to everyone who learned about xAI through Crowdability and followed our recommendation to invest in it.
Investors in xAI will receive SpaceX stock. And when SpaceX goes public, we expect they’ll pocket extraordinary gains — many, many times their money.
Now let’s turn our attention to SpaceX.
SpaceX Has Been a Winning Investment So Far…
I started telling my readers about SpaceX in 2014.
At the time, it was valued at about $10 billion. For a private startup, especially back in 2014, a multi-billion-dollar valuation like this was outrageously high.
But over the years, SpaceX just became more and more successful — and more and more valuable. Its valuation grew from $10 billion, to $50 billion, to $200 billion. And since it hadn’t gone public, I continued to write about it.
Well, here we are in 2026. As of today, SpaceX is now valued at $1.25 trillion. And it recently announced that it’s targeting an IPO this year that will value it at $1.5 trillion.
To make a long story short, anyone who followed me into SpaceX has already done very well. Depending on when they got their shares, investors could be sitting on unrealized — or even realized — gains of 3x, 5x, even 80x or more.
The thing is, the SpaceX story isn’t over yet. Let me explain.
SpaceX: Three Companies in One
For casual observers, SpaceX is synonymous with rockets. Makes sense. It’s become the go-to company to launch anything into Space.
And just look at its revenue growth:
This chart shows its revenues through 2023. As you can see, it was growing fast.
But that was just the start. According to Morgan Stanley, its 2026 revenues are expected to hit $20 billion, and by 2040, they’re expected to hit $100 billion.
The thing is, these revenues aren’t just coming from SpaceX’s rocket business. The company also has a second business: Starlink, a space-based internet service.
Space-industry analysts call Starlink “nothing short of mindblowing.” Here’s how it works. Every time Elon launches one of his rockets, even if it's on behalf of NASA, he stows away satellites for Starlink on board. As the rocket enters space, dozens of these refrigerator-sized Starlink satellites break off and are deployed.
These satellites can beam the internet down to Earth, even to the most remote jungles and mountain tops. So anyone, anywhere, can use Elon’s internet service.
As of January 2026, Starlink had signed up 9 million customers in 150 countries. That’s up from 7 million customers in August 2025, and 8 million in November 2025.
Just imagine how much SpaceX could be worth when much of the world ditches its slow, unreliable internet, and starts using Starlink. The company is already landing contracts with major governments, airlines, and more recently, smartphone makers. In fact, Starlink expects to be able to provide service for smartphone users in 2027.
This explains why Starlink could generate literally billions of dollars in cash flow for SpaceX, year after year.
But now, with its acquisition of xAI, SpaceX is exploring a third business: space-based data centers.
If you’ve been following the news, you might know that data centers have suddenly become central to everything. They sit at the intersection of Artificial Intelligence, energy, geopolitics, and economic growth — and they’ve turned into a critical asset.
From an investment perspective, data centers are one of the best assets in the world. They feature such characteristics as:
- Long-term contracts from 10 to 20 years
- Investment-grade tenants including Big Tech
- Inflation-linked pricing
- High switching-costs
- Scarcity due to power constraints
These characteristics explain why private equity is diving into the opportunity, and why data centers are being valued more like monopolistic utilities than real estate.
This also explains why, with xAI now “on board,” SpaceX is jumping into this sector.
Here are the Top 5 reasons why building data centers in space might make so much sense — in general, and specifically for SpaceX.
1. Nearly Unlimited Solar Power
Power and cooling are the two biggest operating costs for AI data centers.
But in orbit, solar panels get continuous, unobstructed sunlight. This dramatically reduces one of Earth-based data centers’ biggest constraints: energy cost and grid capacity. Furthermore, cooling can be done with radiative cooling into space, rather than with energy-hungry chillers.
2. Reduced Terrestrial Constraints
Space-based data centers avoid challenges such as land acquisition, zoning fights, and water usage, which is a growing political issue for AI data centers.
3. Ultra-Low Latency
For space-native or global applications — for example, satellite networks, Earth observation, defense & intelligence, or communications routing — orbital compute can be faster. Why? Because it enables computing to take place where the data is already.
4. Strategic and Defense Advantages
Space-based data centers are physically harder to attack, potentially agnostic to jurisdiction, and attractive for military, intelligence, and national security workloads. This alone could justify early deployments — even if the economics are marginal at first.
5. Starship Changes the Math
Historically, the idea of space-based data centers was impractical because launch costs were prohibitive. But SpaceX’s Starship can change the math. It has massive payload capacity, it’s reusable, and marginal launch-cost drops dramatically.
The Journey Continues!
SpaceX is the most valuable private startup in history — and if its success continues, it might become the most valuable public company in history.
After all, as Musk famously said in 2023, "I have never lost money for those who invest in me and I am not starting now."
For investors, SpaceX has been a wild, joyful ride — and now the journey continues!
Happy Investing,
Best Regards,
Founder
Crowdability.com
