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%.
Combined, the new “Muskonomy” powerhouse represents a massive 17.54% anchor for the ARK portfolio.
Record-Setting Market Impact
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.
Image via Shutterstock
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