Cathie Wood Bets Big On Musk As SpaceX–xAI Merger Anchors 17.5% Of ARK Fund

Rishabh Mishra

Thu, February 12, 2026 at 7:31 AM GMT+9 3 min read

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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%.

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Combined, the new “Muskonomy” powerhouse represents a massive 17.54% anchor for the ARK portfolio.

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.

Holdings: pic.twitter.com/KjcU02zqpy

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.

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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.

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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.

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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.

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Image via Shutterstock

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This article Cathie Wood Bets Big On Musk As SpaceX–xAI Merger Anchors 17.5% Of ARK Fund originally appeared on Benzinga.com

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