Elon Musk’s rocket company SpaceX has acquired his artificial intelligence firm xAI, as the billionaire moves to bring more of his technology businesses under one structure.
The deal values SpaceX at around $1 trillion and xAI at $250 billion, a source familiar with the transaction said.
SpaceX confirmed the deal on Monday, publishing a memo from Musk that described the merger as the creation of an “innovation engine” combining artificial intelligence, rockets, space-based internet and media platforms.
Financial terms were not disclosed. Musk said the combination will allow deeper integration between AI development and SpaceX’s space infrastructure, arguing that the world’s growing demand for computing power cannot be met solely on Earth.
“In the long term, space-based AI is obviously the only way to scale,” Musk wrote, adding that launching AI-focused satellites will be an immediate priority.
The move follows a series of internal mergers and investments across Musk’s companies. Last year, xAI was combined with his social media platform X, while electric vehicle maker Tesla disclosed a $2 billion investment into xAI. Musk has previously told Tesla investors that he envisions xAI acting as a central system coordinating robotics and automation inside Tesla factories.
Some Tesla shareholders have raised concerns about the strategy, questioning whether resources are being diverted away from the carmaker’s core business.
In his memo, Musk said advances enabled by space-based data centres could eventually support self-sustaining bases on the Moon, human settlements on Mars and broader expansion into space.
SpaceX has also filed plans with US regulators to deploy large numbers of satellites that could support orbital data centres.
The acquisition underscores Musk’s long-term ambition to tightly link artificial intelligence, space technology and advanced manufacturing into a single ecosystem.
Storm Kristin has left central Portugal with severe destruction, major power outages and a reconstruction bill that officials say could reach billions...
Elon Musk’s rocket company SpaceX has acquired his artificial intelligence firm xAI, as the billionaire moves to bring more of his technology busine...
U.S. President Donald Trump said on Monday that talks with Iran are ongoing, while also saying U.S. lawmakers are close to resolving a partial governm...
Ukraine’s negotiating team is heading to the United Arab Emirates for a second round of trilateral peace talks with Russia and the U.S., President V...
Nigeria has filed 57 terrorism-related charges against nine men accused of planning and executing a June 2025 attack in Benue state that killed about ...
U.S. President Donald Trump said on Monday that talks with Iran are ongoing, while also saying U.S. lawmakers are close to resolving a partial government shutdown.
Ukraine’s negotiating team is heading to the United Arab Emirates for a second round of trilateral peace talks with Russia and the U.S., President Volodymyr Zelenskyy said late Monday.
France’s 2026 state budget has been adopted by parliament after Prime Minister Sebastien Lecornu survived two no-confidence motions, ending months of political stalemate that had paralysed fiscal decision-making.
10 people were killed and 26 others injured when a passenger bus rolled off a road and plunged into a ravine in southern Türkiye’s Antalya province on Sunday (1 February), local officials said. In a separate incident, at least seven people were killed in a collision in a tunnel.
U.S. President Donald Trump said on Saturday that the United States has begun negotiations with European leaders over Greenland and that an agreement is already taking shape.
The United States accused Cuba of interfering with the work of its top diplomat in Havana on Sunday (1 February) after small groups of Cubans jeered at him during meetings with residents and church representatives.
Dmitry Medvedev, said European countries have failed to defeat Russia in Ukraine and have instead inflicted serious economic damage on themselves, as he criticised EU policy, praised Donald Trump as a leader who seeks peace, and said Russia would “soon” achieve military victory in the war.
U.S. president Donald Trump said Iran is “seriously talking” with the United States and expressed hope that negotiations could lead to an outcome acceptable to Washington.
A daylight robbery at a jewellery shop in Richmond, one of London’s most affluent and traditionally quiet districts, has heightened security concerns among residents and local businesses.
Web Summit Qatar 2026 opened in Doha on Sunday, drawing tens of thousands of founders, investors, policymakers and technology leaders to what organisers describe as one of the region’s largest digital economy gatherings.
Fresh observations by NASA’s James Webb Space Telescope and the Chandra X-ray Observatory reveal a massive galaxy cluster forming far sooner after the Big Bang than scientists once thought possible.
The landscape was full of giants, but the “perfect snack” 150 million years ago came from the smallest steps on the ground.
China has approved the first batch of Nvidia's H200 artificial intelligence (AI) chips after Washington allowed limited sales, paving the way for major Chinese technology companies to gain access to processors that remain far ahead of domestic alternatives.
TikTok has reached a confidential settlement in a landmark lawsuit over youth mental health, leaving Meta and YouTube to face a jury in California as the first major trial of its kind gets underway.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment