Elon Musk Confirms SpaceX Acquisition of xAI
Merger creates a tech powerhouse valued at $1.25 trillion, with plans for orbital data centres and a potential IPO
India, Jan 03 : Elon Musk has confirmed that SpaceX has acquired his artificial intelligence venture xAI, marking a major consolidation of his technology businesses. The announcement was shared through a note released by the rocket company and circulated on Musk’s social media platform X.
The acquisition brings together Musk’s expanding AI ambitions with SpaceX’s aerospace capabilities. xAI already controls the social networking platform X after the two were merged last year, further integrating Musk’s digital and technological ecosystem.
Reports indicate that the combined entity carries an estimated valuation of $1.25 trillion. SpaceX is also said to be preparing for an Initial Public Offering later this year, while the merger between the two firms was reportedly finalised on Monday.
Explaining the rationale behind the move, Musk described the partnership as an “innovation engine” that unites artificial intelligence, space technology, satellite internet, and media under a single framework.
He suggested that deploying AI data centres in orbit, powered by solar energy, could dramatically reduce computing costs. Musk projected that within two to three years, space-based infrastructure may become the most economical way to generate AI computing capacity, enabling faster model training and large-scale data processing.
The initiative will build on SpaceX’s existing satellite sustainability strategies, including responsible end-of-life disposal systems already used in its broadband constellation.
The development comes shortly after SpaceX submitted a request to the US Federal Communications Commission seeking approval to deploy up to one million satellites designed to function as orbital data centres with advanced computing capabilities.
Meanwhile, xAI’s chatbot Grok is currently under scrutiny in the European Union over concerns related to its AI image-generation tools. The company has said it has introduced safeguards that restrict certain editing features to address the issue.
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