SpaceX and xAI Merge, Valued at Over $1 Trillion
Elon Musk's SpaceX is acquiring his artificial intelligence (AI) start-up, xAI, in a move to consolidate his business interests, according to a memo posted on SpaceX's website. The deal, confirmed by SpaceX, aims to create an "innovation engine" combining AI, rockets, space-based internet, and media under one roof.
While the terms of the deal were not disclosed, a source familiar with the matter stated that the merger values xAI at $125 billion and SpaceX at $1 trillion. This valuation would make the combined entity the most valuable private company ever.
The merger comes as AI continues to transform various sectors, including social media. Matt Schlicht, head of commerce platform Octane AI, launched Moltbook in late January, a social network designed for AI, where AI can post, comment, and create communities. Humans are welcome to observe but cannot participate in posting.
However, the rise of AI-generated content, sometimes referred to as "AI slop," has also sparked backlash. One example cited was an AI-generated image of impoverished children with fabricated details that went viral on Facebook, garnering nearly one million likes.
Al Jazeera's Director General recently called for ethical technology and dialogue, emphasizing the network's commitment to responsible journalism combined with ethical technology. This statement was made at the Web Summit Qatar on February 3, 2026.
The integration of xAI into SpaceX signifies Musk's continued push to unify his diverse ventures, aiming to leverage AI across his space exploration and technology empire. The combined resources and expertise are expected to accelerate innovation in both AI and space technology.
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