Elon Musk has merged SpaceX with his artificial intelligence company xAI in a deal valuing the combined entity at $1.25 trillion. Loren Grush and Edward Ludlow report for Bloomberg.
SpaceX acquired xAI to create what Musk calls “the most ambitious, vertically-integrated innovation engine on (and off) Earth.” The combined company plans to integrate AI, rocket technology, space-based internet and satellite communications. Shares are expected to price at $526.59 each, with an initial public offering still planned for later this year that could raise up to $50 billion.
The deal further entangles Musk’s business empire. XAI raised funds at a $230 billion valuation in January, while SpaceX was valued at approximately $800 billion in December. The merger may advance Musk’s vision to place data centers in space for AI computing. SpaceX recently requested permission to launch up to one million satellites to support this plan.
