Elon Musk has announced a record-breaking deal: his artificial intelligence company xAI has merged with SpaceX. The agreement combines Musk’s space and artificial intelligence projects.
The deal, first reported by Reuters last week, is one of the most ambitious mergers in the tech industry. It brings together the rocket and satellite company (SpaceX) with the fast-growing AI company that makes the chatbot Grok. The deal could also significantly strengthen SpaceX’s data center development plans as Musk competes with Alphabet (Google), Meta, Amazon, and OpenAI in the artificial intelligence space.
According to a person familiar with the deal, SpaceX is valued at $1 trillion and xAI at $250 billion.
“This is not just the next chapter, but a new book in SpaceX and xAI’s mission to create a sun-like sentient being to understand the universe and carry the light of consciousness into space,” Musk wrote.
