Forget the SpaceX IPO: 1 No-Brainer Stock to Buy Hand Over First for the Artificial Intelligence (AI) Space Economy

One of the biggest fiscal storylines truthful acold successful 2026 revolves astir whether oregon not SpaceX volition spell public. While immoderate headlines suggest Elon Musk's abstraction exploration institution has been gathering with concern banks to speech astir an archetypal nationalist offering (IPO), a caller section is swiftly being written arsenic that communicative unfolds.

On Feb. 2, Musk announced a merger of SpaceX and his artificial quality (AI) start-up, xAI, and valued the institution astatine $1.25 trillion. The operation of these 2 assets makes a imaginable SpaceX IPO each the much interesting.

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Nevertheless, I find these talking points to beryllium wholly distracting. Below, I'll explicate wherefore merging xAI and SpaceX makes strategical sense. But much importantly, I'll uncover my apical banal prime astatine the intersection of AI and abstraction exploration. Spoiler alert: It has thing to bash with Musk.

On the surface, merging an AI start-up with a rocket vessel institution looks silly. When it comes to Musk, however, determination are ever respective layers to the equation.

Throughout his tenure arsenic CEO of Tesla, Musk has often hinted astatine a tendency to merge SpaceX with the electrical conveyance (EV) company. Notably, Tesla precocious received shareholder support to marque a $2 cardinal concern successful xAI.

Merging xAI with SpaceX, arsenic good arsenic Tesla's determination to marque a strategical concern successful xAI, comes down to 1 thing: Musk's obsession with control. From a governance perspective, combining xAI with SpaceX provides Musk with acold much oversight of his 2 prized possessions.

From a technological standpoint, xAI and SpaceX tin surely complement 1 another. Space systems make ample volumes of captious information. Take Starlink arsenic an example: Its web collects information crossed assorted geographies, upwind patterns, and idiosyncratic habits, and creates outer and orbital imagery.

Thanks to AI, abstraction infrastructure tin usage this accusation to amended grooming and deployment information surrounding autonomous systems, observe web inconsistencies, and execute predictive modeling.

In essence, satellites and rockets are functioning arsenic distributed processors -- bringing inference adjacent to the archetypal root of data. This helps unlock caller usage cases arsenic abstraction emerges arsenic a halfway pillar supporting captious AI execution.

Alphabet's (NASDAQ: GOOGL) (NASDAQ: GOOG) AI ecosystem spans galore pockets -- including advertising, search, unreality infrastructure, sustainable energy, and autonomous driving. What astir investors astir apt bash not recognize is that Alphabet has a large beingness successful the abstraction economy, too.