"At first glance, bringing social media site X, the controversial chatbot Grok, and the reusable rocket Starship under one roof seems like a strange mix. But merging SpaceX and xAI does fit with Musk's long-term vision for an AI-powered future. The world's richest man has suggested that the logical conclusion of the AI infrastructure boom is to build data centres in the freezing vacuum of space, where they can access plentiful solar power and operate without the huge amounts of water needed to cool them on Earth."
"The three companies have already been moving closer together in recent months. Tesla said on Wednesday that it had invested $2 billion in xAI, after SpaceX reportedly made a similar investment last year. The electric carmaker also told investors it would evaluate "potential AI collaborations" with xAI, following its addition of the startup's Grok chatbot to its vehicles last July. It wouldn't be the first time Musk has combined parts of his sprawling business empire."
SpaceX is preparing for a possible $1.5 trillion IPO and is reportedly weighing mega-mergers with Tesla or xAI. Tesla and SpaceX have both invested in xAI, and Tesla has added xAI's Grok chatbot to its vehicles while exploring further AI collaborations. xAI previously acquired X, expanding Musk's portfolio across social media, AI, and transportation. A merger would integrate aerospace launch capabilities, AI infrastructure, and electric-vehicle platforms, potentially enabling novel synergies such as space-based data centers that exploit abundant solar power and reduced cooling constraints compared with Earth-based facilities.
Read at Business Insider
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