Elon Musk Merges "SpaceX" and "xAI" in Historic $1.25 Trillion Deal
In a monumental step reflecting Elon Musk's ambitions in artificial intelligence and space exploration, the world's richest person announced the merger of his companies "SpaceX" and "xAI" in a deal valuing the new entity at $1.25 trillion.
According to informed sources reported by "Bloomberg", "SpaceX" alone is valued at $1 trillion, while "xAI" is valued at $250 billion.
The deal, which is entirely stock-based, will combine the two largest private companies in the world and pave the way for the merged company's public offering later this year, with an expected share price of $526.59.
Musk stated that the goal of the merger is to create "the most ambitious and vertically integrated innovation engine on Earth and in space," encompassing artificial intelligence, rockets, satellite internet, and direct communications with mobile devices, while providing "the most important global platform for real-time information and freedom of expression."
Musk explained in his statement that the least expensive way to perform massive AI computations over the next two to three years will be in space, which will allow for accelerating the development of models and processing data at unprecedented speed and scale, contributing to scientific and technological breakthroughs that benefit humanity.
The merged company plans to launch up to one million satellites into Earth's orbit as part of its ambitious plan to develop the "Starlink" network and expand funding sources for the capital-intensive "xAI" operations.
It is worth noting that Musk previously acquired the "Twitter" platform and renamed it to "X", then merged it with "xAI" in a $33 billion deal, reflecting Musk's strategy of integrating capital, efficiencies, and technologies across his various companies.
Unlike some of his other projects, "SpaceX" is one of his most successful and important companies, being the only American provider capable of regularly sending astronauts to the International Space Station, and generating increasing revenues from its satellite network, making it a vital funding source for future artificial intelligence operations.
