SpaceX Acquires xAI in $1.25 Trillion Deal, Plans IPO
SpaceX, Elon Musk's rocket company, acquired xAI, the artificial intelligence firm he founded three years prior, in a deal valued at $1.25 trillion. The unconventional merger combines the two privately held firms into a single entity with plans for an initial public offering (IPO) this year, according to Fortune.
Musk, who serves as CEO of both SpaceX and xAI, as well as Tesla, described the combination as forming "the most ambitious, vertically integrated innovation engine on (and off) Earth." He cited the potential for space-based AI development, integrating rockets, space-based internet, direct-to-mobile-device communications, and a real-time information platform, according to a blog post on SpaceX's website.
The deal comes as the tech industry faces uncertainty regarding future job prospects. Yamini Rangan, CEO of HubSpot, a $15 billion software company, admitted she doesn't know what jobs will look like in an AI-enabled future, even within two years, Fortune reported. Rangan noted that new jobs will emerge as technology evolves, making long-term career planning difficult.
Meanwhile, in the energy sector, U.S. shale producer Devon Energy acquired Coterra Energy for nearly $26 billion, creating a domestic oil and gas producer second only to Exxon Mobil, Chevron, and ConocoPhillips in production volumes, the companies announced Feb. 2, according to Fortune. The all-stock merger of near equals creates the largest oil and gas producer in the Delaware Basin in west Texas and south.
The wave of mergers and acquisitions follows a period of slowed dealmaking in the energy sector due to fluctuating oil prices and tariffs, Fortune reported. Analysts suggest that stabilizing crude oil prices are contributing to the resurgence of mergers and acquisitions.
In other tech news, MIT Technology Review reported on the rise of AI deepfakes and the future of EV batteries. A study from researchers at Stanford and Indiana University found that a civilian online marketplace for buying and selling AI-generated content, backed by Andreessen Horowitz, allowed users to buy custom instruction files for generating celebrity deepfakes. Some of these files were specifically designed to create pornographic images banned by the site.
Demand for electric vehicles and the batteries that power them is increasing, according to MIT Technology Review. In 2025, EVs made up over a quarter of new vehicle sales globally, up from less than 5% in 2020. Some regions are seeing even higher uptake, with over 50% of new vehicle sales in China last year being battery electric or plug-in hybrids.
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