Cathie Wood’s flagship venture fund, ARK Venture Fund, has made a significant investment in the merger between Elon Musk’s aerospace giant, SpaceX, and his artificial intelligence startup, xAI. This merger has created a $1.25 trillion entity, solidifying SpaceX as the fund’s largest single position.
A Trillion-Dollar Integration
The ARK Venture Fund has confirmed the merger, which values the combined entity at $1.25 trillion. Prior to the merger, SpaceX held a weight of 11.23% in the fund, while xAI held a weight of 6.31%. The combined entity now represents a massive 17.54% anchor for the ARK portfolio.
Record-Setting Market Impact
The merger, which was announced by Musk, involves 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.
Portfolio Dominance and IPO Outlook
The combined entity towers over other ARKVX holdings, such as Figure AI and Databricks. 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. The deal tightens Musk’s interconnected empire, which includes Tesla Inc., Neuralink, and X.
Top Holdings in ARKVX
The following table shows the top five holdings in ARKVX:
| 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% |
Regulatory Scrutiny and Future Outlook
The deal 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. As SpaceX prepares for a potential public offering, the future outlook for the company and the ARK Venture Fund remains promising.