First it was rockets. Then AI. Now Elon Musk is combining both into one massive company. SpaceX acquired xAI on Monday, creating the most valuable private company in the world at a combined valuation of $1.25 trillion. The deal cements SpaceX’s dominance while giving xAI, which has burned through cash trying to catch up with AI rivals, a much-needed financial lifeline.
Musk says the ultimate goal is building data centers in space, where there are no land constraints and closer proximity to the sun for solar energy. SpaceX has already filed plans with the FCC to launch an “orbital data center system” consisting of up to one million satellites. But experts warn there are significant technical and physical limitations to that idea — and some skeptics believe the merger is simply a financial rescue for xAI.
The combined company could go public around June, with Musk hoping to raise about $50 billion in the offering.
First it was rockets. Then AI. Now Elon Musk is combining both into one massive company. SpaceX acquired xAI on Monday, creating the most valuable private company in the world at a combined valuation of $1.25 trillion. The deal cements SpaceX’s dominance while giving xAI, which has burned through cash trying to catch up with AI rivals, a much-needed financial lifeline.
Musk says the ultimate goal is building data centers in space, where there are no land constraints and closer proximity to the sun for solar energy. SpaceX has already filed plans with the FCC to launch an “orbital data center system” consisting of up to one million satellites. But experts warn there are significant technical and physical limitations to that idea — and some skeptics believe the merger is simply a financial rescue for xAI.
The combined company could go public around June, with Musk hoping to raise about $50 billion in the offering.
