Elon Musk merged SpaceX and xAI into a single entity, creating the world's most valuable private company valued at $1.25 trillion, according to a blog post by Musk on Monday. The move aims to create "the most ambitious, vertically-integrated innovation engine on (and off) Earth," combining AI, rockets, space-based internet, direct-to-mobile device communications, and a real-time information platform, according to a statement from SpaceX.
The merger addresses the growing global electricity demand for AI, which Musk believes cannot be met with terrestrial solutions. "In the long term, space-based AI is obviously the only way to scale," Musk wrote, suggesting that building data centers in space is the logical solution to power AI ambitions due to the vast power and space available.
Ars Technica reported that SpaceX plans to launch a massive satellite constellation to power the new entity. The combined company aims to scale its mission to "make a sentient sun to understand the Universe and extend the light of consciousness to the stars!"
However, the merger comes amid scrutiny of Musk's past. The Verge reported that the release of documents related to Jeffrey Epstein, revealing that Musk sought an invitation to Epstein's island, could add risk to his plans to take the combined company public.
In related news, Ukraine and SpaceX have collaborated to combat the use of Starlink by Russian drones. Ars Technica reported that Ukraine will soon require all Starlink terminals to be registered and whitelisted, disconnecting unregistered terminals to prevent Russian military use of the satellite broadband network. Ukraine Minister of Defense Mykhailo Fedorov emphasized that this is the only technical solution to counter the threat.
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