SpaceX and xAI Reportedly Merge, Becoming World's Most Valuable Private Company
SpaceX, Elon Musk's space exploration company, reportedly acquired xAI, his artificial intelligence startup, in a deal that values the combined entity as the world's most valuable private company. The merger, 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, according to the BBC.
While the terms of the deal were not disclosed, a source familiar with the matter told Reuters that the acquisition valued xAI at $125 billion and SpaceX at $1 trillion. This valuation would surpass all other private companies. The merger consolidates Musk's diverse business interests under one umbrella.
The move comes amid other significant developments in the tech and business world. Novo Nordisk, the Danish company behind Ozempic and Wegovy, experienced an 18% plunge in shares after warning that price cuts would be "painful" for the firm, according to BBC Business. Chief Executive Maziar Mike Doustdar described the pricing pressures as "unprecedented" and "painful," amplified by a deal with the Trump administration to lower the cost of weight-loss drugs in the US. The company had previously announced thousands of job cuts amidst increasing competition.
In another instance of job cuts impacting the tech sector, Pinterest reportedly sacked two engineers for tracking which workers were affected by recent layoffs. BBC Business reported that the engineers wrote custom scripts to improperly access confidential company information, identifying the locations and names of dismissed employees. Pinterest CEO Bill Ready had stated in an email that the company was "doubling down on an AI-forward approach," impacting approximately 15% of the workforce, or roughly 700 roles.
Meanwhile, The Washington Post announced massive layoffs, eliminating one-third of its staff, including its sports section, several foreign bureaus, and its books coverage, according to Al Jazeera. A spokesperson for the Post stated that the decision would make the paper more dynamic, but the move was widely criticized as baffling and irresponsible.
These events highlight a period of significant change and restructuring across various sectors, from space exploration and AI to pharmaceuticals, social media, and traditional media.
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