Elon Musk Announces Merger of SpaceX and xAI Valued at $1.25 Trillion
In a significant move reflecting Elon Musk's ambitions in artificial intelligence and space exploration, the world's richest individual has announced the merger of his two companies, SpaceX and xAI, valuing the new entity at $1.25 trillion.
According to "Bloomberg," SpaceX is estimated to be worth $1 trillion, while xAI is valued at $250 billion.
The all-stock deal will combine the two largest private companies globally and pave the way for an initial public offering (IPO) of the merged entity later this year, with an anticipated share price of $526.59.
Musk stated that the merger aims to create "the most ambitious and vertically integrated engine of innovation on Earth and in space," encompassing artificial intelligence, rockets, satellite internet, and direct communication with mobile devices, while providing "the most important global platform for real-time information and free speech."
In his statement, Musk emphasized that the most cost-effective method for conducting massive artificial intelligence computations in the next two to three years will be in space, accelerating the development of models and data processing at an unprecedented pace and scale to achieve scientific and technological breakthroughs beneficial to humanity.
The merged company plans to launch up to one million satellites into Earth's orbit as part of its ambitious initiative to develop the "Starlink" network and expand funding sources for the capital-intensive work of xAI.
It is noteworthy that Musk previously acquired the platform "Twitter" and rebranded it as "X," before merging it with xAI in a $33 billion deal, reflecting Musk's strategy to integrate capital, expertise, and technologies across his various ventures.
Unlike some of his other projects, SpaceX is considered one of Musk's most successful and pivotal companies, being the only U.S. provider that regularly sends astronauts to the International Space Station and generating increasing revenue from its satellite network, making it a vital funding source for future artificial intelligence initiatives.
