Musk's SpaceX and xAI Merge, Walmart Hits $1 Trillion Valuation, and More Business News
Elon Musk's SpaceX is acquiring his artificial intelligence (AI) start-up, xAI, in a merger that values the combined entity as the world's most valuable private company, according to the BBC. The deal, confirmed by SpaceX through a memo from Musk posted on its website, aims to create an "innovation engine" integrating AI, rockets, space-based internet, and media.
While the terms of the deal were not disclosed, a source familiar with the matter told Reuters that xAI was valued at $125 billion and SpaceX at $1 trillion. Musk stated in his memo that the merger would combine these technologies under one roof.
In other business news, Walmart became the first traditional retailer to achieve a $1 trillion market valuation. The milestone reflects the US retail giant's booming e-commerce business and its success in attracting price-conscious shoppers, according to the BBC. Wall Street has also responded positively to its investments in AI. Walmart joins a small group of companies, mostly tech firms like Nvidia and Alphabet, with valuations exceeding $1 trillion. The company's share price rose by more than 3% on Tuesday.
Meanwhile, Pinterest recently sacked two engineers for creating a tool to track which workers lost their jobs in a recent round of layoffs. The company recently announced job cuts, with chief executive Bill Ready stating in an email he was "doubling down on an AI-forward approach," according to an employee who posted some of the memo on LinkedIn. Pinterest told investors the move would impact about 15% of the workforce, or roughly 700 roles, without saying which teams or workers were affected. But then "two engineers wrote custom scripts improperly accessing confidential company information to identify the locations and names of all dismissed employees."
Netflix and Warner Bros Discovery faced scrutiny from US senators regarding their proposed $82 billion takeover. During a Senate antitrust subcommittee hearing on Tuesday, members 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).
Finally, Comac, China's state-owned planemaker, is increasingly targeting markets beyond China with its C919 passenger jet, designed to compete with the Airbus A320neo and Boeing 737 MAX. The company showcased its aircraft at the Singapore Airshow, aiming to position itself in the Southeast Asian aviation market. According to the BBC, the airshow provided Comac with an opportunity to display its latest commercial jets and aviation technology.
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