"A few of the most well-known products owned by Musk will play a part in the deal, including AI chatbot Grok, satellite company Starlink and his social media platform X, formerly known as Twitter. What's behind the SpaceX, xAI deal? In a statement announcing the deal, Elon Musk said his goal is to create "the most ambitious, vertically-integrated innovation engine on (and off) Earth.""
"Musk has previously spoken about his aspirations to develop a technology to allow data centers to operate in space, and the merger could be a step to make developing such technology easier, with solar power being the source of energy. According to Musk, the electricity demands needed by AI computers cannot be met on Earth "without imposing hardship on communities and the environment." He argues that adding access to solar power will "transform our ability to scale compute.""
SpaceX is acquiring xAI to combine rocket and artificial intelligence capabilities under Elon Musk’s ownership. AI chatbot Grok, satellite network Starlink, and social platform X will be integrated into joint operations. Elon Musk aims to build the most ambitious, vertically-integrated innovation engine on and off Earth and to enable data centers to operate in space powered by solar energy. Musk warns that AI electricity demands cannot be met on Earth without environmental and community hardship and expects space-based solar access to transform compute scaling. Bloomberg reported a $1.25 trillion valuation for the merged company ahead of a potential mid-June SpaceX IPO that could raise about $50 billion. SpaceX continues development of Starship.
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