Elon Musk has announced that SpaceX has acquired his artificial intelligence startup xAI. 

The deal brings together Musk’s space and AI ambitions by combining SpaceX with xAI, the company behind the Grok chatbot.

The agreement values SpaceX at $1 trillion and xAI at $250 billion. This makes it the biggest merger and acquisition deal ever recorded.

Under the terms, xAI investors will receive SpaceX shares in exchange for their holdings. The combined company is expected to price shares at around $527 each.

SpaceX also holds major US government contracts.