Elon Musk's artificial intelligence company xAI has ceased to exist as a standalone entity, formally absorbed into SpaceX and rebranded as SpaceXAI, with the change made official through a new logo and handle switch on X on Monday.

The rebranding marks the final stage of a merger that began in February, when SpaceX acquired xAI in an all-stock deal reportedly valued at $1.25 trillion, making the AI company a wholly owned subsidiary. In May, Elon Musk said xAI would no longer operate as a separate company and that its AI products, including the Grok chatbot, would become part of SpaceX. The new SpaceXAI logo combines the xAI and SpaceX brands, while trademark filings indicate plans for satellite-based data centres, orbital computing services and AI software.

Musk has said the merger supports his long-term vision of building AI infrastructure in space. SpaceX has already applied to the US Federal Communications Commission (FCC) for permission to deploy up to one million satellites that could serve as AI computing nodes in low-Earth orbit. The company also operates the Colossus supercomputer, reportedly equipped with more than 220,000 Nvidia GPUs, and has leased computing capacity to AI company Anthropic.

The move comes just weeks after SpaceX's record-breaking June IPO, which reportedly became the largest public offering in history. Analysts say the company's filings identified artificial intelligence as one of its biggest future growth opportunities.

Although the SpaceXAI branding has appeared on social media, it has not yet been updated on the company's official website or regulatory filings, suggesting the public rollout is still underway. The merger also strengthens ties between Musk's businesses, though it remains unclear whether Tesla's AI projects, including Full Self-Driving and Optimus, will eventually be integrated with SpaceXAI's space-based computing plans.