"Earlier this week, news emerged that SpaceX CEO Elon Musk was considering taking his private space company public on his birthday in June at a staggering valuation of $1.5 trillion, making it easily the largest IPO in history. Now, as Reuters reports, Musk is hoping to go one step further, merging his AI startup xAI with SpaceX ahead of the IPO - a baffling plan that raises far more questions than answers."
"For now, we have no idea why the deal is even on the table, let alone the financial specifics. The narrative will likely have something to do with SpaceX helping xAI launch data centers into Earth's orbit - an idea that AI tech leaders have become obsessed with as of late, despite experts warning it makes little sense, citing concerns over economic viability and bandwidth limitations."
""The lowest cost place to put AI will be in space," Musk said during an interview in Davos last week. "And that will be true within two years, maybe three at the latest." Other companies, most notably Jeff Bezos' Blue Origin, are also looking to launch thousands of satellites that will ultimately serve data centers from space. Google CEO Sundar Pichai has also been infatuated by the idea,"
SpaceX is reportedly being positioned for a possible public offering at a $1.5 trillion valuation, with plans to merge xAI into SpaceX ahead of the IPO. The proposed merger lacks disclosed financial specifics and may tie to plans for launching orbital data centers. Experts express skepticism about orbital data centers, citing economic viability and bandwidth limitations. Musk predicts space will become the lowest-cost place to run AI within two to three years. Other firms, including Blue Origin and Google, are exploring similar orbital infrastructure. Entities in Nevada were created to facilitate share swaps, and SpaceX previously invested $2 billion in xAI.
Read at Futurism
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