SpaceX Acquires xAI, Creating a $1.25 Trillion Private Giant
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SpaceX has acquired xAI, Elon Musk’s artificial intelligence startup, creating what Bloomberg describes as the world’s most valuable private company, with a combined valuation of $1.25 trillion.
In a memo published Monday, Musk said the merger is driven by his vision for space-based data centers, arguing that Earth-bound AI infrastructure cannot sustainably meet the surging power and cooling demands of advanced models. He positioned orbit as a long-term solution to global AI energy constraints.
The deal brings together two of Musk’s most ambitious companies just as SpaceX reportedly prepares for a potential IPO as early as June. Musk did not address whether the acquisition will affect those plans.
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Wild numbers.
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Space + AI + energy all merging fast.
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Orbital data centers sounds sci-fi… but very Musk.