What to Know About Elon Musk’s Merger of SpaceX With His AI Company by Laurence Darmiento
Elon Musk recently announced what seemed like an odd pairing of his companies: SpaceX was acquiring xAI, the artificial intelligence firm that also owns the social media platform X. The merger combines a highly profitable rocket company with an AI startup that is burning through billions of dollars as it competes with OpenAI and other rivals for dominance in artificial intelligence. The merged companies are valued at $1.25 trillion. That is higher than recent separate valuations of SpaceX at $800 billion and xAI’s holding company at $230 billion. IPO shares are expected to price at roughly $525. Aside from the financial benefits, there are technical reasons. Musk has sketched out a futuristic plan that involves sending up to a million satellites — called data centers — into an orbit, where the sun could power them all day and night while they do artificial intelligence computations. What to know about Elon Musk’s merger of SpaceX with his AI company
