SpaceX has acquired xAI.
The buyer: Elon Musk. The seller: also Elon Musk.

The combined entity is now valued at $1.25 trillion — $1 trillion for SpaceX, $250 billion for xAI. That puts it just 26% below Tesla's market cap.

Which means Musk now derives more of his paper wealth from SpaceX than from Tesla.

Let that satisfying number sink in for a second.

SpaceX generated about $15 billion in revenue last year and $8 billion in profit. It has $650 million in Bitcoin on its balance sheet (roughly 8,300 coins).
Those will face public accounting scrutiny once the IPO happens.

xAI, meanwhile, burned through $9.5 billion in the first nine months of 2025.
It's still chasing OpenAI and Google. It has Grok. It has ambition.
What it doesn't have is profitability.

Tesla? Down 6% year-to-date. Deliveries fell 16% last year.
Revenue dropped for the first time ever.

And yet, Tesla just invested $2 billion into xAI. SpaceX also put in $2 billion.
Last year, xAI absorbed X in a stock deal.
It valued the social network at $33 billion.
Higher than the $9 billion it had cratered to.

Musk owns 43% of SpaceX. He owns 13% of Tesla.

You can do the math on who benefits most from these transactions.

Musk says the merger is about building "orbital data centers".

That’s AI compute powered by solar energy in the vacuum of space, free from Earth's energy constraints.

Analysts at Moffett Nathanson called the capital requirements "simply enormous" and said the tech isn't close to ready.

SpaceX has asked the FCC for permission to launch up to one million satellites 100x the size of Starlink.
But the infrastructure, cooling, and radiation challenges remain unsolved.

Translation: the space pitch is years away. The cash need is now.

SpaceX is preparing for a mid-2026 IPO that could raise $50 billion at a valuation as high as $1.5 trillion.

xAI needs that money. SpaceX has it, or will have, once public investors buy in.

The "Muskonomy" keeps growing.

And if you're a Tesla shareholder, you're now funding the AI company that competes for your CEO's attention.

Meanwhile, SpaceX shareholders wait for the real payday.

Bitcoin’s price roller-coaster continues. Is this dip a buying opportunity or just the start of deeper losses?

Gold and silver just took a beating. What was a hot bet on inflation and a weak dollar suddenly feels very different. Traders are feeling it.

Amazon may be writing one of the biggest checks in tech history.
If it goes through, it could reshape the AI arms race, deepen AWS’s ties to one of the world’s most powerful AI labs.

On Thursday, gold hit an all-time high near $5,600.
By Monday, it had fallen to $4,404.

That's a 21% drop in four trading days.

Silver got hit even harder:
Down 41% from last week's record above $121 to $71.67.

A 40-year market veteran called it "unprecedented."
Saxo Bank's strategy team said the historic rally had turned into "an equally historic rout."

And yet, both metals are still up for the year. Gold +9.1%. Silver +9.4%.
Less than five weeks into 2026.

President Trump named Kevin Warsh as the next Fed chair. The dollar surged to its highest level in weeks, reversing a slide to 4-year lows.

Gold and the dollar tend to move in opposite directions.
When the dollar strengthens, gold gets less attractive to foreign buyers.
And traders who had piled into precious metals suddenly found themselves on the wrong side of the trade.

Exchanges responded aggressively.
The CME raised margins on Comex precious metals futures.

Shanghai tightened trading rules on gold and silver twice in one week.
Volatility was that extreme.

In China, Shanghai gold prices flipped from a $19 premium over London to a $12 discount overnight — meaning import demand evaporated instantly.

The iShares Silver ETF (SLV) traded over $40 billion in volume on Friday alone. That topped the previous record set just the Monday before.

It also exceeded Friday's combined volume in Apple and Amazon.
One of the most traded securities in history.
For a silver ETF.

Despite the carnage, the bank says it remains "firmly bullish" on gold over the medium term.

Their target: $6,300.

The thesis: this is a structural diversification trend away from paper assets and into real assets.

And if Warsh at the Fed signals a weaker dollar ahead, that trade has room to run.

Translation: JPMorgan isn't betting on the dollar. They're betting against it.

The crash may be unprecedented. But so was the rally that preceded it.

Palantir crushed earnings on Monday.

Revenue up 70% year-over-year to $1.41 billion.
EPS of $0.25, beating expectations.

Full-year 2026 guidance of $7.2 billion.
That’s a billion higher than Wall Street expected.

CEO Alex Karp called it:
"Indisputably the best results I'm aware of in tech in the last decade."

The stock jumped 10% the next morning.

And yet, one of the most famous short sellers in history is still on the other side of the trade.

Q4 2025 revenue: $1.41B (vs $1.33B expected)

US commercial revenue: up 137% YoY to $507M

US government revenue: up 66% to $570M

Rule of 40 score: 127

Adjusted operating margin: 57%

The company guided Q1 revenue to $1.53B.
That’s $200M above consensus.

In short: not just a beat. A blowout.

Back in November, Michael Burry, the "Big Short" guy, disclosed $9.2 million in notional put options against Palantir.

His thesis: Palantir is a bubble stock trading at absurd multiples.
At the time of his bet, the stock was around $180 with a price-to-sales ratio north of 150.

Karp's response was memorable. He called the short "bats--- crazy."

Here's the tension: Palantir is real. The growth is real.

The government contracts are massive.
We’re talking about a $10B Army deal, a $448M Navy contract, and growing ties to the Trump administration.

But the valuation is still eye-watering.

At 164x forward earnings and over 100x sales, Palantir is priced like a company that has to keep growing 50%+ for years. Any stumble would be brutal.

Burry ‘has correctly predicted 37 of the last five recessions’, as the saying goes.

He may be early. He may be wrong.

But his bet is a reminder that even great companies can be bad stocks if the price already assumes perfection.

The earnings were spectacular. The stock moved accordingly.

But somewhere out there, Burry is still holding his puts.

Source: Stock Analysis

Imagine you have two lemonade stands.

One stand (SpaceX) has a HUGE delivery truck that can go anywhere.
Even to space. And it makes $8 billion a year.

The other stand (xAI) makes really smart robot helpers, but it costs $1 billion a month just to keep it running. It's burning through cash fast.

So you combine them. Now the delivery truck can carry the robot helpers to space, where it's actually cheaper to run them (no electricity bills, no rent).

Plus, when you go to the bank to ask for money (IPO), you can say:

"Look, I have the truck AND the robots!"

And the bank says:

"Wow, that's worth $1.5 trillion!"

That's why Musk merged SpaceX with xAI.
The truck makes money. The robots spend money.

Together, they're worth more than apart.