"SpaceX has acquired Elon Musk's artificial intelligence startup, xAI, creating the world's most valuable private company, the spaceflight company announced Monday. Musk, who is also the CEO of SpaceX, wrote in a memo posted to the rocket company's website that the merger is largely about creating space-based data centers - an idea he has become fixated on over the last few months."
"The tie-up values the combined company at $1.25 trillion, according to Bloomberg News, which was first to report the completed deal. SpaceX has been reportedly preparing an IPO for as early as June of this year. It's unclear whether the merger will affect that timeline. Musk did not address the IPO in his public memo. The merger brings together two of Musk's companies, each with its own financial challenges."
SpaceX acquired xAI to create space-based data centers intended to avoid terrestrial power and cooling constraints for large AI systems. The combined entity is valued at $1.25 trillion and may affect SpaceX's planned IPO timeline, which had reportedly targeted June. xAI is reportedly burning about $1 billion per month, while SpaceX derives up to 80% of revenue from launching Starlink satellites. The deal links ongoing satellite production and launch demand to AI infrastructure ambitions, potentially producing a sustained revenue stream from frequent satellite deployments and related launch services.
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