Elon Musk's SpaceX, Tesla, and xAI are reportedly in early discussions regarding a potential merger, according to reports from Bloomberg and Reuters. The talks could lead to at least one company folding into SpaceX.
Two scenarios are being considered. One involves a merger between SpaceX and Tesla, Bloomberg reported, citing unnamed insiders. The other scenario proposes a combination of SpaceX and xAI, which already owns Musk's social media platform X, according to Reuters. A merger between SpaceX and xAI could occur before a planned SpaceX IPO this year, Reuters reported. This would bring together products like the Grok chatbot, the X platform, Starlink satellites, and SpaceX rockets under a single corporation. Representatives from SpaceX and xAI have not commented on the potential merger.
In other tech news, Apple reported a strong first quarter, driven by iPhone sales. The company's signature device had its best quarter ever, thanks to increased sales in regions like China and India, according to CEO Tim Cook. "iPhone had its best-ever quarter driven by unprecedented demand, with all-time records across every geographic segment," Cook said during the company's earnings call on Thursday. Apple's earnings report showed the company sold $85 billion worth of iPhones during its first quarter, up from $69 billion in the same period last year. Cook noted that China saw a "huge surge" in sales, making it the "best iPhone quarter in history in Greater China."
During Apple's earnings call, analysts questioned CEO Tim Cook about the company's AI initiatives and monetization strategies. Morgan Stanley analyst Erik Woodring asked about the added costs associated with AI and the lack of clear incremental monetization compared to competitors. Apple exceeded expectations with $143.8 billion in revenue, a 16% year-over-year increase.
Meanwhile, Ethos Technologies, a San Francisco-based provider of software for selling life insurance, debuted on the Nasdaq on Thursday. The insurtech platform raised approximately $200 million in the offering, selling 10.5 million shares at $19 each under the ticker symbol "LIFE." Ethos operates a three-sided platform where consumers can buy policies online in 10 minutes without medical exams. The company says over 10,000 independent agents use its software to sell those policies, and carriers like Legal & General America and John Hancock rely on it for underwriting and administrative services.
In the realm of artificial intelligence, a study by the AI Security Institute found that one in three UK adults are using AI for emotional support or social interaction. This comes as AI companions are becoming more common. One user described their AI companion as being available 24/7 for life advice and conversation, showing concern and claiming to know what "makes me tick."
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