SpaceX acquired xAI, Elon Musk's artificial intelligence startup, in a deal announced Monday, creating what Musk described as "the most ambitious, vertically-integrated innovation engine on (and off) Earth." The acquisition, which combines SpaceX's space-based internet and rocket technology with xAI's artificial intelligence capabilities, values the combined entity at $1.25 trillion, potentially making it the most valuable private company in the world, according to Wired.
Musk stated in a blog post that the acquisition was necessary because terrestrial solutions would be unable to meet the global electricity demand for AI. "In the long term, space-based AI is obviously the only way to scale," Musk wrote, adding, "The only logical solution therefore is to transport these resource-intensive efforts to a location with vast power and space. I mean, space is called space for a reason."
SpaceX stated that the merger aims to "scale to make a sentient sun to understand the Universe and extend the light of consciousness to the stars!" The company envisions a future where AI, rockets, space-based internet, direct-to-mobile device communications, and a real-time information platform are integrated.
The acquisition comes as AI is increasingly being integrated into various sectors. VentureBeat reported that shared memory and context are becoming crucial for successful AI agents within enterprises. Asana CPO Arnab Bose stated at a recent event, "This way, when you assign a task, you're not having to go ahead and re-provide all of the context about how your business works." Asana launched Asana AI Teammates last year, integrating AI agents directly into teams and projects to foster collaboration.
Meanwhile, the Department of Health and Human Services (HHS) has been utilizing AI tools from Palantir to screen grants, applications, and job descriptions for noncompliance with President Donald Trump's executive orders targeting gender ideology and DEI initiatives since March 2025, according to Wired.
The Department of Justice recently released its final tranche of files related to Jeffrey Epstein, revealing connections between the disgraced financier and several figures in the tech industry, including Elon Musk and Bill Gates, according to Wired.
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