Elon Musk merged SpaceX and xAI, creating a single entity valued at $1.25 trillion, making it the world's most valuable private company, according to announcements made on Monday. The move combines Musk's rocket and satellite company with his AI startup, with plans to leverage space-based resources for AI development.
SpaceX announced the acquisition of xAI, stating the merger would form "the most ambitious, vertically-integrated innovation engine on (and off) Earth, with AI, rockets, space-based internet, direct-to-mobile device communications and the worlds foremost real-time information and free speech platform." The company added that this marked "not just the next chapter, but the next book in SpaceX and xAIs mission: scaling to make a sentient sun to understand the Universe and extend the light of consciousness to the stars!"
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. "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."
The merger comes as SpaceX continues to expand its Starlink satellite internet service. In related news, Ukraine and SpaceX recently collaborated to combat the use of Starlink by Russian drones. Ukraine is implementing a system requiring users to register their Starlink terminals to prevent unauthorized access by Russian forces. According to the Ukraine Ministry of Defense, only verified and registered terminals will be allowed to operate within the country, with all others being disconnected. Ukraine Minister of Defense Mykhailo Fedorov emphasized that the only technical solution to counter this threat.
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