SpaceX significantly expanded its operations in 2026, acquiring artificial intelligence (AI) firm xAI for $250 billion in February and AI coding company Cursor for $60 billion in August. Concurrently, the company is investing in a $119 billion semiconductor manufacturing project, known as Terafab, located in Grimes County, Texas. This strategic push transforms SpaceX into a diversified technology conglomerate with substantial stakes in AI and advanced chip production, reshaping its corporate identity beyond its core space and satellite internet businesses.

SpaceX's AI Acquisitions

SpaceX acquired xAI in February 2026 for $250 billion. By October, xAI was rebranded as SpaceX Super Intelligence. In August 2026, SpaceX also completed the acquisition of Anysphere, the developer of the AI coding platform Cursor, for $60 billion. The transaction for Cursor became effective on August 14, 2026, making it a wholly owned subsidiary. These moves mark SpaceX's rapid expansion into software and artificial intelligence.

The Terafab Project

Public records indicate that SpaceX's planned Terafab semiconductor complex in Grimes County, Texas, could become a $119 billion megaproject, built across four phases through 2036. Texas officials announced on August 6 that the first phase alone represented an investment of more than $16.8 billion, aiming to create 3,000 jobs within a 100-million-square-foot facility. Earlier in the year, on May 6, a public notice showed SpaceX's initial plan to spend $55 billion on the plant. On June 3, county commissioners voted 4-1 to approve a reinvestment zone and a 100% property tax abatement for the Terafab facility. The project is a joint effort involving SpaceX, Tesla, and xAI, with the goal of manufacturing advanced AI chips for various applications, including Tesla's autonomous vehicles, humanoid robots, and potentially SpaceX's orbital data centers. Elon Musk announced the Terafab project on March 21, 2026, as a venture also involving Intel.

Merger Talks and Ukraine Scrutiny

Elon Musk has publicly supported the idea of merging Tesla and SpaceX, confirming that the boards of both companies formed independent special committees to evaluate the potential combination. Musk stated on a SpaceX earnings call that both companies “have a lot to be gained” from collaboration on artificial intelligence, chip design, and robotics. Analysts estimate such a merger could create a technology conglomerate valued at about $3.5 trillion, uniting businesses from electric vehicles and energy storage to space exploration and AI computing. However, no final agreement has been reached, and the merger remains uncertain. Separately, SpaceX has faced international scrutiny regarding its Starlink service in Ukraine. Ukrainian officials reported speed restrictions on Starlink terminals between October 12 and 14, leading to disruptions in connectivity. The Wall Street Journal reported that Elon Musk was responsible for ordering these speed restrictions, which he later stated were due to Ukraine violating Starlink's terms of service by using the system for “offensive drone strikes”.

What we could not confirm

We could not confirm the specific terms or progress of the ongoing merger discussions between Tesla and SpaceX beyond their boards forming special committees. The exact timeline for the proposed $119 billion Terafab project's full four phases through 2036 also remains to be fully detailed. We could also not confirm the precise nature of Ukraine's alleged Starlink terms of service violations.