U.S. space-related stocks climbed on Tuesday after Elon Musk announced the merger of SpaceX and xAI, a deal that values the combined entity at $1.25 trillion and marks a major push to expand artificial intelligence infrastructure beyond Earth.

Elon Musk announced that xAI has released the model weights for Grok 2.5, last year’s top-performing version of its AI system, on the open-source platform Hugging Face.