Elon Musk: Elon Musk has once again surprised the tech and space industry. His space tech company SpaceX has acquired Artificial Intelligence startup xAI. The total valuation of this big deal is said to be around $1.25 trillion (about £910 billion). This step has been taken at a time when SpaceX is preparing to enter the stock market this year.
Launch of a new tech-innovation machine
In a statement released on the official website of SpaceX, it has been said that after this merger, a platform will be created which will take technological innovation to new heights both on earth and in space. This will include AI, rocket technology, space-based internet, direct mobile communication and a platform related to real-time information and free speech.
What will SpaceX get from xAI?
After this deal, SpaceX will get the benefit of xAI’s key technologies, which include Grok AI chatbot and social media platform
What is the value of both the companies?
According to reports, in this deal the value of SpaceX has been estimated at around $1 trillion and that of xAI at $250 billion. The market value of the new company formed after the merger can be even higher. It is believed that the timing of listing in the stock market can be kept in the beginning of summer.
Why is space important for AI?
The announcement clearly stated that existing AI systems depend on large data centers built on land, which require a lot of power and cooling. This increases pressure on the environment and communities. Space-based data centers are the only solution to advance AI at scale in the long run.
Musk’s business now closer
In recent months, Elon Musk has been busy connecting his companies. In early 2025, xAI bought X in an all-stock deal. At the same time, Tesla has also recently announced a $2 billion investment in xAI.
While SpaceX is continuously launching satellites and getting big contracts from the US government, xAI is also progressing rapidly despite controversies. Questions were raised about racist content and deepfakes on Grok AI, yet the company’s value continued to increase due to the AI boom. Recently xAI raised funding of $20 billion, taking its value to around $230 billion.
Musk himself confirmed the rumors
There was speculation about this deal for many days. When the news of the merger was mentioned on social media, Elon Musk replied with just one word “Yes” on X and put an end to the discussions.
What next?
This merger of SpaceX and xAI is not just a business deal but is being considered an attempt to create the future of AI and space together. In the times to come, it will be interesting to see what direction this mega-ecosystem takes the tech world.
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