Musk Merges SpaceX and xAI to Build Space Data Centers; Walmart Reaches Trillion-Dollar Valuation
In a flurry of business news on Tuesday, Elon Musk announced the merger of SpaceX and xAI in a deal valued at $1.25 trillion, while Walmart's stock surge propelled the company to a $1 trillion market valuation for the first time. Microsoft also unveiled plans to launch an AI content licensing app store, and aviation automation startup Skyryse secured $300 million in funding, achieving unicorn status.
Musk stated the merger of SpaceX and xAI would facilitate the construction of data centers in space, according to The Verge. SpaceX is currently profitable, while xAI is reportedly burning through $1 billion per month, raising questions about Musk's motives for the merger. Andrew J. Hawkins of The Verge suggested the deal might be a way for Musk to bail out himself.
Walmart's stock rose on Tuesday, pushing its market capitalization to $1 trillion, a first for the retail giant, according to Al Jazeera. The company's shares experienced a high in midday trading, up 2.1 percent from the market open, driven by news of a new CEO and anticipated trade negotiations with India, where Walmart has a significant presence in both supply chain and domestic markets.
Microsoft revealed its plans to create the Publisher Content Marketplace (PCM), an AI licensing hub designed to streamline the process for AI companies to license content for training their AI models, The Verge reported. The PCM will display usage terms set by publishers, allowing AI companies to easily shop the terms and set up deals to use online content for grounding their AI models, while content owners get usage-based compensation, according to Emma Roth of The Verge.
Skyryse, an aviation automation startup based in El Segundo, California, announced a Series C investment of over $300 million, led by Autopilot Ventures, TechCrunch reported. This funding round values the company at $1.15 billion, making it a unicorn. The capital will be used to integrate its operating system, SkyOS, across numerous aircraft, including U.S. military Black Hawk helicopters, as the company nears the end of its Federal Aviation Administration certification process for its flight control system. Other investors in this round include Fidelity Management & Research Company, ArrowMark Partners, Atreides Management LP, BAM Elevate, Baron Capital Group, Durable Capital Partners, Positive Sum, and Qatar Investment Authority.
In other tech news, TechCrunch reported that Y Combinator (YC) startups will now have the option to receive their seed funding in stablecoins. YC's standard deal involves investing $500,000 into accepted startups in exchange for 7% of their companies. This new option, starting with the upcoming spring batch, will allow startups to receive funding via stablecoins on the Base, Solana, and Ethereum blockchains. YC partner Nemil Dalal told The Block that stablecoin transfers are often more effective, especially for founders in emerging markets.
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