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WSJ Minute Briefing

Elon Musk to Merge SpaceX and xAI

WSJ Minute Briefing

The Wall Street Journal

Business News, News

4.1671 Ratings

🗓️ 3 February 2026

⏱️ 2 minutes

🧾️ Download transcript

Summary

Plus: Data company Palantir hits another revenue record despite criticism over its role in the Trump administration’s immigration crackdown. And lawmakers are set to vote on ending the partial government shutdown. Daniel Bach hosts. Sign up for the WSJ’s free What’s News newsletter. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

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among real estate professionals. Here's your morning brief for Tuesday, February 3rd. I'm Daniel

0:35.6

Bach for the Wall Street Journal.

0:43.3

Elon Musk is merging SpaceX and X-AI, forming a one-and-a-quarter trillion-dollar company.

0:49.0

The merger was confirmed in a memo by Musk posted by SpaceX, which brings together the mature rocket and satellite business with his AI startup that is facing steep competition.

0:54.0

The move was unexpected, as industry

0:56.0

observers had anticipated that XAI would merge with Tesla instead. SpaceX invested $2 billion into

1:02.8

XAI last year, while Tesla committed to invest the same amount in the AI startup last week.

1:09.3

Shares and Palantir technology surged overnight on the back of record fourth quarter revenue.

1:14.4

The 70% jump in earnings was fueled by an increase in U.S. government demand for its AI tools.

1:20.4

While that government connection is the company's primary growth engine, it's also a double-edged sword,

1:25.6

as contracts with ICE draw criticism from lawmakers.

1:29.3

And on Capitol Hill, Republican House Speaker Mike Johnson says that he has the votes to end a

1:34.3

partial government shutdown as soon as today, passing a bill that would fund the government

1:38.7

for the rest of the fiscal year, but the Department of Homeland Security for just two weeks.

1:43.9

That short-term extension is designed to

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