Musk Consolidates Assets; SpaceX Acquires xAI

SpaceX acquired start-up xAI in a record deal valuing the combined entity at $1.25 trillion. Elon Musk insists that the space-based AI will offer the lowest-cost way to generate computing power.

“In the long term, space-based AI is obviously the only way to scale. The cost-efficiency alone will enable innovative companies to forge ahead in training their AI models and processing data at unprecedented speeds and scales,” Musk said. The deal gives SpaceX a valuation of $1 trillion, and xAI a value of $250 billion.

The statement did not include details on the all-share offering, including price and valuation. SpaceX filed a request on 2 February with the US Federal Communications Commission to deploy up to 1 million satellites. The company is looking to hold an initial public offering this year. In early January, xAI completed a funding round, raising $20 billion from a wide range of investors, including Nvidia and Cisco.