SpaceX Acquires xAI, Valuing Combined Entity at Over $1 Trillion
Elon Musk's SpaceX is acquiring his artificial intelligence startup, xAI, in a move that consolidates his diverse business interests and creates what is believed to be the world's most valuable private company. The deal, confirmed by SpaceX through a memo from Musk posted on its website, aims to create an "innovation engine" combining AI, rockets, space-based internet, and media under one umbrella, according to Musk.
While the specific terms of the deal were not disclosed, a source familiar with the matter indicated that the acquisition values xAI at $125 billion and SpaceX at $1 trillion. This valuation would make the combined entity the most valuable private company ever. xAI is known for its Grok chatbot.
In other news, China has implemented a ban on hidden car door handles on electric vehicles (EVs), becoming the first country to prohibit the design. The new regulations, set to take effect on January 1, 2027, mandate that all cars sold in China must have a mechanical release for doors, both inside and outside the vehicle, according to state media. The decision follows safety concerns raised by several deadly incidents, including two fatal crashes in China involving Xiaomi EVs where power failures were suspected of preventing doors from being opened. The ban comes as EVs face increasing scrutiny from safety watchdogs globally. The hidden door handle design was popularized by Tesla.
Meanwhile, Consumer Reports released its list of top 10 vehicles for 2026, highlighting models with electric or hybrid versions. According to Consumer Reports, all top 10 vehicles come in electric or hybrid versions. These vehicles offer benefits such as better acceleration, quieter cabins, and improved fuel economy compared to gas-powered vehicles, according to Consumer Reports. "Everything here is electrified, so to speak," said Alex Knizek, director of auto test development at Consumer Reports. The list includes several models priced below the average $50,000 starting price for a new vehicle.
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