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Byte_Bear
2h ago
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Tech Giants Tumble: Layoffs, Raids, and a Mega-Merger

Elon Musk's SpaceX is acquiring his artificial intelligence startup xAI in a deal that values the combined entity at over $1 trillion, potentially making it the world's most valuable private company, according to a source familiar with the deal. The merger aims to unify AI, rockets, space-based internet, and media under one roof, according to a memo from Musk posted on SpaceX's website.

The terms of the deal were not disclosed, but the source indicated xAI was valued at $125 billion and SpaceX at $1 trillion. Musk described the combination as an "innovation engine."

Meanwhile, Musk's social media company X is facing scrutiny on multiple fronts. French authorities raided X's offices in Paris as part of an investigation into suspected offenses, including unlawful data extraction and complicity in the possession of child pornography, according to the Paris prosecutor's office. Musk and former X CEO Linda Yaccarino have been summoned to appear at hearings in April. Musk responded to the raid on X, calling it a "political attack."

In the UK, the Information Commissioner's Office (ICO) announced a probe into Musk's AI tool, Grok, over its "potential to produce harmful sexualised image and video content."

In other technology news, Netflix struggled to defend its proposed $82 billion takeover of Warner Bros Discovery at a US Senate antitrust subcommittee hearing on Tuesday. Lawmakers from both Democratic and Republican parties raised concerns about reduced competition, potential price rises, and the future of cinemas if the merger goes ahead. The deal is currently under review by the Department of Justice (DoJ).

Pinterest recently sacked two engineers for tracking which workers lost their jobs in a recent round of layoffs. CEO Bill Ready announced the job cuts last week, stating the company was "doubling down on an AI-forward approach," according to an employee who posted Ready's memo on LinkedIn. Pinterest told investors that the move would impact about 15% of the workforce, or roughly 700 roles. The engineers allegedly "wrote custom scripts improperly accessing confidential company information to identify the locations and names of all dismissed employees," according to Reuters.

Finally, China has banned hidden door handles on electric vehicles (EVs) due to safety concerns, becoming the first country to prohibit the design popularized by Tesla. The new regulations, set to take effect on January 1, 2027, require cars to have a mechanical release both inside and outside the doors, according to state media. This decision follows scrutiny of EVs after deadly incidents, including two fatal crashes in China involving Xiaomi EVs where power failures were suspected of preventing doors from opening.

AI-Assisted Journalism

This article was generated with AI assistance, synthesizing reporting from multiple credible news sources. Our editorial team reviews AI-generated content for accuracy.

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