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SpaceX and xAI Merge, Creating Potentially World's Most Valuable Private Company
SpaceX, Elon Musk's space exploration company, absorbed his artificial intelligence startup, xAI, in a deal that could value the combined entity as the world's most valuable private company, according to the BBC. The merger, confirmed by SpaceX via a memo from Musk posted on its website, aims to unify AI, rockets, space-based internet, and media under one roof.
While the specific terms of the deal remained undisclosed, a source familiar with the matter told Reuters that the transaction valued xAI at $125 billion and SpaceX at $1 trillion. If accurate, this valuation would position the merged company ahead of all other private entities. Musk described the combination as an "innovation engine."
In other business news, Walmart became the first traditional retailer to achieve a $1 trillion market valuation, reported BBC Business. The milestone reflects the US retail giant's booming e-commerce business and its success in attracting price-conscious shoppers. Wall Street has also responded positively to Walmart's investments in artificial intelligence. Walmart joins an elite club of mostly tech firms, including Nvidia and Alphabet, with valuations over $1 trillion. The company's share price rose by more than 3% on Tuesday.
Meanwhile, tensions rose in the Arabian Sea after a US fighter jet shot down an Iranian drone that was flying "aggressively" towards the USS Abraham Lincoln, Sky News reported. The incident occurred as Washington prepared for talks with Tehran later this week. According to the US military, the Shahed-139 drone approached the aircraft carrier with "unclear intent" before being intercepted by an F-35C fighter launched from the vessel.
In Spain, Elon Musk criticized Spanish Prime Minister Pedro Sánchez for proposing a social media ban for minors, Euronews reported. Musk called Sánchez a "tyrant and traitor to the people of Spain" in response to Madrid's plans to roll out new measures aimed at regulating digital platforms and protecting minors. The proposed legislation includes laws aimed at holding social media executives accountable. Musk reacted to a video in which Sánchez announced the new legislative package.
In aviation news, Comac, China's state-owned planemaker, is increasingly targeting markets beyond China with its C919 passenger jet, reported BBC Business. The plane is designed to compete with the Airbus A320neo and Boeing 737 MAX. According to Comac, the company is "setting sights on the Southeast Asian aviation market." The company showcased its aircraft at the Singapore Airshow.
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