Cathie Wood's flagship venture fund has realigned its heaviest bets following a record-breaking merger between Elon Musk's aerospace giant and his artificial intelligence startup.
A Trillion-Dollar Integration
The ARK Venture Fund (ARKVX) has confirmed that SpaceX and xAI have merged in a “transformative deal” that values the combined entity at $1.25 trillion.
This consolidation has officially solidified SpaceX as the fund’s largest single position. According to fund data as of Jan. 31, SpaceX held a weight of 11.23%, while xAI Holdings Corp. stood at 6.31%.
Two of our high-conviction holdings— SpaceX and xAI—have merged in a transformative deal valuing the combined company at $1.25 trillion. This solidifies SpaceX as the ARK Venture Fund's largest position.
The merger, which Musk announced on Monday, involved SpaceX acquiring xAI to unify his missions in space and artificial intelligence (AI). The transaction values SpaceX at approximately $1 trillion and xAI at roughly $250 billion.
This deal shattered a twenty-year record for global M&A, previously held by Vodafone's $203 billion takeover of Mannesmann in 2000.
Musk framed the synergy as a long-term play for human intelligence, stating the merger marks “not just the next chapter, but the next book” in his shared mission. Taking to X, Musk celebrated the union: “To the stars! SpaceX & xAI are now one company.”
Here is a list of ARKVX’s top five holdings.
Ticker
Name
Weight (%)
Private Company
SpaceX
11.23%
Private Company
X.AI Holdings Corp.
6.31%
Private Company
Figure AI Inc.
4.24%
Private Company
Databricks, Inc.
3.55%
Private Company
Zipline International Inc.
3.41%
Portfolio Dominance and IPO Outlook
The combined entity towers over other ARKVX holdings, such as Figure AI (4.24%) and Databricks (3.55%). This strategic move comes as SpaceX reportedly prepares for a potential public offering later this year that could see its valuation climb past $1.5 trillion.
While the deal tightens Musk's interconnected empire—which includes Tesla Inc.(NASDAQ:TSLA), Neuralink, and X—it is expected to draw regulatory scrutiny regarding governance and SpaceX's extensive federal contracts.
For ARK investors, the merger consolidates high-conviction exposure into a single, dominant AI and aerospace leader.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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