Space exploration company SpaceX (SPAX.PVT) will merge with xAI (XAAI.PVT), the company said in a statement, in a deal that would combine two of Elon Musk’s largest private startups.
“SpaceX acquired xAI to build the most ambitious, vertically integrated innovation engine on Earth (and beyond), including artificial intelligence, rockets, space-based internet, direct-to-mobile communications, and the world’s foremost platform for real-time information and free speech,” Musk said in a statement posted on the SpaceX website. “This marks not only the next chapter, but the next book in SpaceX and xAI’s mission: to scale, build a sentient sun to understand the universe, and extend the light of consciousness to the stars!”
Bloomberg first reported the merger earlier Monday.
Musk said the big driving force behind the merger was space data centers and space-based artificial intelligence.
“Current advances in AI rely on large terrestrial data centers, which require massive amounts of power and cooling. Even in the short term, terrestrial solutions simply cannot meet the power needs of global AI… Space-based AI is clearly the only way to scale,” Musk said.
Tesla engineers sometimes develop projects for SpaceX and vice versa, including xAI. Last week, Tesla confirmed a $2 billion investment in xAI preferred shares.
According to Bloomberg, SpaceX is planning an initial public offering to raise up to $50 billion, valuing the company at about $1.5 trillion. It’s unclear how those numbers will change now that xAI has become part of SpaceX.
This story is developing. Please check back for updates.
Pras Subramanian is Yahoo Finance’s chief automotive reporter. You can follow him X etc. Instagram.
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