lon Musk just moved $250 billion from one pocket to another.

On Monday, Musk’s aerospace firm SpaceX announced it would acquire xAI, his AI company that also owns the social media platform X. Although the companies did not disclose the financial terms of the deal, The Information reported that the acquisition is valued at $250 billion.

The combined company stated in its announcement that the acquisition would form “the most ambitious, vertically-integrated innovation engine on (and off) Earth.” SpaceX reiterated its ambition to build space-based data centers to harness solar energy for AI training.

“This marks not just the next chapter, but the next book in SpaceX and xAI's mission: scaling to make a sentient sun to understand the Universe and extend the light of consciousness to the stars,” the company said in its announcement.

According to Bloomberg, the deal notches the combined company a $1.25 trillion valuation ahead of its upcoming IPO, and is expected to price the shares at $526.59 each. Notably, this valuation would allow SpaceX to leapfrog OpenAI as the world’s most valuable startup (and likely fuel Musk’s rivalry with CEO Sam Altman). OpenAI is targeting a valuation of up to $830 billion as it courts investors for an upcoming twelve-figure funding round.

The deal also adds another layer to Musk’s Russian nesting doll of companies, as xAI acquired X, formerly Twitter, last March, in a deal worth $45 billion ($33 billion when taking into account its $12 billion in debt), bringing together the companies’ “data, models, compute, distribution and talent.” That deal helped ease investor concerns as the social media platform’s value declined under Musk’s stewardship.