Stock Markets February 3, 2026

SpaceX Purchase of xAI Spotlights Potential Mega IPOs and Historical Deal Sizes

Unified AI and space ambitions place a possible record-breaking public offering back in focus as industry analysts eye ripple effects across capital markets

By Sofia Navarro GM
SpaceX Purchase of xAI Spotlights Potential Mega IPOs and Historical Deal Sizes
GM

SpaceX has acquired xAI, bringing the Grok chatbot maker together with the rocket-and-satellite company and creating a combined platform that ties artificial intelligence and space operations under a single corporate umbrella. The transaction assigns valuations of $1 trillion to SpaceX and $250 billion to xAI, and takes place as SpaceX prepares for a major initial public offering this year that could occur as early as June. If xAI alone raised more than $25.6 billion in a public offering, it would surpass Saudi Aramco's 2019 listing as the largest IPO on record. Below is an overview of the largest global IPOs to date, ranked by deal size.

Key Points

  • SpaceX has acquired xAI, valuing SpaceX at $1 trillion and xAI at $250 billion; the move aligns AI and space operations under one company.
  • SpaceX is planning a significant initial public offering this year that could occur as early as June, and an xAI IPO surpassing $25.6 billion would eclipse Saudi Aramco's 2019 listing as the largest to date.
  • A landmark deal of this scale could influence the IPO market and encourage other major private technology startups to consider public listings, with implications for technology, financials and capital markets.

SpaceX has moved to bring the creator of the Grok chatbot, xAI, into its corporate structure, consolidating the billionaire founder's ventures in space and artificial intelligence. The combined arrangement values SpaceX at $1 trillion and xAI at $250 billion. The timing dovetails with SpaceX's preparations for a major initial public offering this year, with the company planning a potentially high-profile public debut that could occur as soon as June.

The possible public offerings tied to these businesses have drawn attention for their potential scale. Industry commentary notes that should xAI secure more than $25.6 billion in proceeds from an IPO, it would overtake the current record-holder for the largest initial public offering, Saudi Aramco's 2019 listing.

Analysts cited in market coverage expect that such a landmark deal could reinvigorate the IPO market and encourage other major private startups to consider public listings. Among the firms mentioned as potentially affected are artificial intelligence developers that have remained private, with observers suggesting the market could see renewed interest from high-profile technology ventures.


Largest IPOs globally - ranked by deal size

Company Offer date Sector Deal size
Saudi Aramco 12/05/19 Energy $25.6 billion
Alibaba 09/18/14 Technology $21.8 billion
SoftBank Corp 12/10/18 Communication Services $21.3 billion
NTT Mobile 10/22/98 Communication Services $18.1 billion
Visa 03/18/08 Financials $17.9 billion
AIA 10/21/10 Financials $17.8 billion
ENEL SpA 11/01/99 Utilities $16.5 billion
Meta 05/17/12 Technology $16 billion
General Motors 11/17/10 Consumer Discretionary $15.8 billion
ICBC - H 10/20/06 Financials $13.96 billion

Market participants have linked the size and timing of any offering to the broader prospects for initial public offerings, noting that a landmark deal may encourage other private companies to consider exits to public markets. Among the names referenced in commentary are leading AI startups that have stayed private to date; observers suggest the environment could shift if a high-profile listing proves successful.

Readers considering individual stocks may see headline events such as these as catalysts for broader market movement. One example posed to investors is whether General Motors is attractive at current levels; tools that apply multiple valuation models were promoted to assess relative value across stocks. In that context, a fair value exercise using a mix of valuation approaches can provide a comparative view of a company's valuation profile.

The overview above relies on a compilation of the biggest IPOs by deal size to date and places the recent corporate alignment between SpaceX and xAI into that context. While the potential of a major public offering draws attention, the ultimate size and timing of any offering remain subject to corporate decisions and market conditions.

Risks

  • Timing risk - the planned SpaceX IPO this year, potentially as soon as June, remains subject to change, which affects market expectations and planning.
  • Size uncertainty - the potential for xAI to exceed $25.6 billion in an IPO is conditional on the actual amount raised, and only if it surpasses that threshold would it become the largest IPO ever recorded.
  • Market reaction uncertainty - while analysts expect a large listing to reinvigorate the IPO market and draw other private firms public, that outcome depends on investor demand and broader market conditions.

More from Stock Markets

Rolls-Royce Poised to Announce Up to £1.5 Billion Share Buyback Alongside Annual Results Feb 22, 2026 DAE Capital Nears Purchase of Macquarie AirFinance, Sources Say Feb 22, 2026 S&P 500 Shows Signs of Tightening Range; Strategist Sees Potential for a Big Move Feb 22, 2026 Supreme Court to Clarify Reach of Helms-Burton Act in Multi-Billion Dollar Cuba Claims Feb 22, 2026 Switzerland Pulling Ahead in Early Economic Gains from AI Feb 22, 2026