Elon Musk's SpaceX is set to acquire his artificial intelligence startup, xAI, in a merger that would value the combined entity at over $1 trillion, potentially making it the world's most valuable private company, according to the BBC. SpaceX confirmed the deal, posting a memo from Musk about the merger on its website, though the specific terms were not disclosed.
The merger aims to create an "innovation engine" integrating AI, rockets, space-based internet, and media under one umbrella, according to Musk's memo. The source familiar with the deal valued xAI at $125 billion and SpaceX at $1 trillion.
In other business news, Walmart achieved a $1 trillion market valuation, becoming the first traditional retailer to reach this milestone, according to BBC Business. This places Walmart among a small group of companies, primarily tech firms like Nvidia and Alphabet, with valuations exceeding $1 trillion. The company's share price has soared, reflecting its booming e-commerce business and success in attracting price-conscious shoppers. Wall Street has also responded positively to Walmart's investments in artificial intelligence. Walmart's move to the tech-heavy Nasdaq reinforced the retailer's push to be seen as a digital company.
Meanwhile, Pinterest recently sacked two engineers for improperly accessing confidential company information to identify and share the locations and names of employees affected by recent layoffs, according to BBC Business. The layoffs, impacting approximately 15% of the workforce (roughly 700 roles), were announced by CEO Bill Ready, who cited a "doubling down on an AI-forward approach."
In the entertainment industry, Netflix and Warner Bros Discovery faced scrutiny during a US Senate antitrust subcommittee hearing regarding Netflix's proposed $82 billion takeover of Warner Bros Discovery, according to BBC Business. Lawmakers from both parties raised concerns about reduced competition, potential price increases, and the future of cinemas if the merger proceeds. The deal is currently under review by the Department of Justice (DoJ).
Disney has appointed Josh D'Amaro, the head of its amusement park business, as its new chief executive, according to BBC Business. D'Amaro, a 28-year veteran of the company, will succeed current CEO Bob Iger, starting on March 18. The decision to appoint D'Amaro, who has led Disney's most profitable division in recent years, resolves a succession puzzle for the entertainment giant. Iger had previously led the company for roughly two decades, except for a brief period in 2022 when his successor was ousted, and he was asked to return.
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