Elon Musk has merged his AI company xAI into his rocket and satellite firm SpaceX, creating a combined private enterprise valued at around $1.25 trillion.
- The merger aligns with Musk’s long-term goal of building space-based AI infrastructure, including the potential for orbital data centres powered by satellites that could overcome terrestrial limitations in energy and AI compute.
- For xAI, which has high development costs and limited revenue, joining SpaceX offers access to capital and investor confidence tied to SpaceX’s more established business model.
- Some market observers see the deal as audacious but complicated, potentially diluting SpaceX’s traditional aerospace focus, while others view it as the next stage of Musk’s technological ecosystem.
This merger signals a strategic bet that AI and space technologies are increasingly interconnected not just commercially, but as foundational infrastructure for future computing and exploration.
Source: The Guardian reporting.