The recent merger of SpaceX and xAI Holdings Corp. represents a landmark event in the technology investment landscape, leading to a major reallocation in Cathie Wood's ARK Venture Fund (ticker ARKVX). The integration of Elon Musk's prominent aerospace enterprise with his artificial intelligence venture has culminated in what fund data identifies as a collective valuation of $1.25 trillion. This unified business entity now holds the position as the single largest investment within the ARK portfolio.
According to information current as of January 31, the fund allocated 11.23% of its capital to SpaceX, alongside a 6.31% weight held in xAI Holdings Corp. Combining these allocations, the consolidated position occupies 17.54% of the portfolio, a considerable share reflecting ARK's confidence in the merged entity's growth potential.
This consolidation marks a profound step in Musk’s efforts to align his space exploration and artificial intelligence ventures. The acquisition, which officially brings xAI under SpaceX's umbrella, values SpaceX at an estimated $1 trillion and xAI at approximately $250 billion. The magnitude of this transaction eclipses previous records, setting a new benchmark for global mergers and acquisitions by surpassing the $203 billion Vodafone-Mannesmann deal from 2000.
Musk characterized the alliance as more than a typical merger, emphasizing it as a strategic evolution in his vision for advancing human intelligence and space exploration collectively. He publicly proclaimed the unity on the social platform X, stating, “To the stars! SpaceX & xAI are now one company.”
| Ticker | Name | Weight (%) | Type |
|---|---|---|---|
| Private | SpaceX | 11.23% | Private Company |
| Private | X.AI Holdings Corp. | 6.31% | Private Company |
| Private | Figure AI Inc. | 4.24% | Private Company |
| Private | Databricks, Inc. | 3.55% | Private Company |
| Private | Zipline International Inc. | 3.41% | Private Company |
Compared to other substantial holdings within the fund, the combined SpaceX and xAI position dominates, overshadowing significant names such as Figure AI and Databricks, which represent 4.24% and 3.55% of the portfolio respectively. This repositioning highlights a notable shift towards consolidating ARKVX’s exposure in a single, highly integrated technology player.
Market observers note that the backing of this consolidated entity comes amid speculation regarding a potential initial public offering by SpaceX anticipated later this year. Analysts estimate that such a move could elevate the company’s valuation beyond the trillion-dollar mark, potentially reaching $1.5 trillion. This development aligns with Musk’s broader portfolio strategy, where intertwined ventures including Tesla Inc. (NASDAQ: TSLA), Neuralink, and X contribute to an expansive and interconnected technological ecosystem.
Notwithstanding its growth prospects, the merger is expected to undergo rigorous regulatory scrutiny. Concerns are likely to concentrate on governance challenges posed by the integration and SpaceX’s substantial federal contracts, which augment the regulatory complexity surrounding the combined entity.
For investors in ARK funds, the union of SpaceX and xAI consolidates substantial exposure into a leading innovator in aerospace and artificial intelligence sectors, centralizing conviction in a company positioned for significant future impact within these transformative industries.