In his official statement on the SpaceX website, Musk noted that this merger will create an "innovation machine" capable of simultaneously developing rockets, artificial intelligence, as well as providing internet services and managing social media.
Although the details of the deal have not been disclosed, sources claim that xAI was valued at $125 billion, while SpaceX is valued at $1 trillion, making it the most valuable private company in history.
In January, Tesla, another of Musk's companies, announced plans to invest $2 billion in xAI.
Musk emphasized at that time that xAI would serve as the "conductor of the orchestra" for Tesla's factories, where autonomous robots would be employed. He also announced plans to cease production of older electric vehicle models, the Model S and X, to retrofit the factory for the production of humanoid robots, Optimus.
According to reports, SpaceX is considering an IPO. Pitchbook analyst Emily Zheng noted that the merger with xAI is likely a step towards preparing for a public offering.
"The consolidation of these companies before the IPO allows SpaceX to showcase growth and differentiation opportunities to potential investors, which are capital-efficient," she stated.
Space Data Centers
In the merger announcement, Musk expressed the opinion that space could be the solution to the energy shortage problem for companies working with artificial intelligence."In the long term, AI based in space is undoubtedly the only way to scale," the businessman wrote.
He also added that he plans to "focus soon" on launching satellites to support AI systems.
The creation of space data centers will open up opportunities for financing and supporting self-developing bases on the Moon, a new civilization on Mars, and ultimately, expansion across the entire Universe.Musk hopes that these space data centers will be able to harness energy from solar panels, with their operating costs kept to a minimum. To implement this project, he plans to launch a million satellites into orbit using Starship rockets, which he claims can take off every hour and carry up to 200 tons of payload.
xAI was founded as a division of the social network X (formerly known as Twitter) after Musk acquired the platform in 2022.
By spring 2025, xAI had become an independent company, with a valuation already exceeding that of X.
Later, the startup acquired this social network, and Musk stated that the merger would create a unified whole of "data, models, computations, distribution, and employees".
Photo on the homepage: Reuters.
