Exclusive: SpaceX and xAI Agree on 0.1433 Share Exchange Ratio, Source Reveals

• xAI investors will receive 0.1433 SpaceX shares per xAI share held under the exchange agreement
• xAI executives have the option to receive $75.46 in cash per share instead of SpaceX stock
• The deal consolidates ownership between two major Elon Musk companies, linking his AI venture with his aerospace business

Summary: SpaceX and xAI Share Exchange Agreement

Elon Musk's artificial intelligence company xAI and SpaceX have reached a deal on a share exchange ratio of 0.1433, according to a Reuters exclusive published February 2. Under this agreement, xAI investors will receive 0.1433 shares of SpaceX stock for each xAI share they hold.

Key Terms:

• Exchange ratio: 0.1433 SpaceX shares per xAI share
• Cash alternative: Some xAI executives may opt for $75.46 per share in cash instead of SpaceX stock

Market Context:

The deal represents a significant consolidation of assets within Musk's business empire, linking his space exploration venture with his AI startup. The specific exchange ratio suggests a valuation framework between the private companies, though neither company's current valuation was disclosed in the report.

Company Response:

SpaceX was not immediately available for comment on the transaction at the time of publication.

Implications:

This arrangement provides liquidity options for xAI stakeholders while potentially strengthening operational synergies between Musk's companies. The dual option of equity or cash for executives offers flexibility in compensation structure. The deal may signal deeper integration between Musk's various ventures, potentially leveraging xAI's artificial intelligence capabilities with SpaceX's aerospace operations.

The transaction details remain limited, with no timeline for completion or regulatory approval process mentioned. Investors should monitor for additional disclosures regarding the strategic rationale and financial impact of this exchange agreement on both entities.