SpaceX and xAI merge in $1.25T AI-space tech deal

SpaceX and xAI have merged, forming a $1.25T company focused on integrating AI and space tech. The merger aims for cost-effective AI compute using satellite-powered data centers.

Elon Musk has confirmed the completion of a merger between SpaceX and xAI, consolidating his ventures in space technology and artificial intelligence. The deal, previously discussed with investors and detailed in internal memos, was officially announced by SpaceX. The unified company is valued at approximately $1.25 trillion, with share prices expected to be around $527. This merger aims to create a vertically integrated innovation engine, combining AI, rockets, space-based internet, and direct-to-mobile communications. Musk emphasized that the merger will enable more cost-effective AI compute, predicting that space-based solutions are necessary to meet growing energy demands. Plans include deploying up to one million satellites to power AI data centers in space. While the structure and regulatory details remain undisclosed, employees have been notified and key personnel are expected to play major roles. The combined company is expected to go public at the stated valuation.