SpaceX Acquires xAI in Trillion-Dollar Deal Ahead of IPO
Elon Musk's rocket company, SpaceX, acquired xAI, the artificial intelligence firm he founded three years prior, in a deal valued at $1.25 trillion, according to Fortune. The acquisition combines the two privately held firms into a single entity with plans for a historic IPO this year.
Musk, who serves as CEO of both SpaceX and xAI, as well as Tesla, described the combination as one that will form the most ambitious, vertically integrated innovation engine on (and off) Earth. He cited AI, rockets, space-based internet, direct-to-mobile-device communications, and the world's foremost real-time information and free speech platform as components of the integrated company, according to a blog post on SpaceX's website reported by Fortune.
The deal is unconventional, merging two companies under Musk's leadership with overlapping interests in technology and innovation. The combined entity aims to leverage AI for space exploration and communication, potentially enabling advancements in autonomous spacecraft and data analysis.
The acquisition comes as SpaceX continues to expand its Starlink satellite internet service and develop its Starship rocket for deep-space missions. xAI, on the other hand, focuses on developing advanced AI models and applications. The integration of these technologies could lead to new capabilities in space-based data processing and real-time communication.
The planned IPO is expected to be one of the largest in history, reflecting the combined valuation of SpaceX and xAI. The offering could attract significant investor interest, given the potential for growth in the space and AI sectors.
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