SpaceX Bought xAI for $250 Billion. That Division Now Supposedly Has a $26.5 Trillion Total Addressable Market.

Published September 25, 2026 · Category: Finance

Overview

One of the most controversial aspects of Space Exploration Technologies (NASDAQ: SPCX) is its valuation, due to factors such as its future capabilities, projected revenue and earnings, and total addressable market (TAM), which the company estimates at $28.5 trillion.

What's interesting is that SpaceX believes that nearly 93% of its TAM comes from its artificial intelligence (AI) division. But this division only came into existence when the company purchased xAI, another company owned by its founder, Elon Musk.

Details

SpaceX reportedly purchased xAI earlier this year for $250 billion in an all-stock deal. How did a company that was only purchased earlier this year for $250 billion now have a TAM of $26.5 trillion?

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Source

Originally published at www.fool.com.

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