Elon Musk links SpaceX and xAI in a record-setting merger to boost AI

SpaceX has officially acquired xAI, merging two of Elon Musk’s leading ventures to form a potentially world-leading private company. This union combines SpaceX’s expertise in rockets and satellites with xAI’s rapid advancements in artificial intelligence, aligning with growing global demand for computing power. Musk highlighted this merger as a significant new phase in their joint mission, emphasizing the strategic focus on leveraging AI to advance space operations. The deal reflects the substantial valuations of both companies—SpaceX at approximately $800 billion and xAI at around $230 billion—underscoring strong investor confidence in space and AI innovation. Financial pressures in the AI sector, particularly the high costs of powering and cooling large-scale AI models, have driven the integration. By bringing xAI under its umbrella, SpaceX gains greater control over AI development and deployment, while xAI benefits from SpaceX’s infrastructure, capital, and launch capabilities. Musk noted that relocating AI computing efforts to space could address the immense power and cooling demands of terrestrial data centers