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 (2 February), 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.
"This marks not just the next chapter, but the next book in SpaceX and xAI's mission: scaling to make a sentient sun to understand the Universe and extend the light of consciousness to the stars!" Musk said.
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 (EV) 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 U.S. 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.
However, the agreement could draw scrutiny from regulators and investors over governance, valuation and conflicts of interest given Musk's overlapping leadership roles across multiple firms, as well as the potential movement of engineers, proprietary technology and contracts between entities.
SpaceX also holds billions of dollars in federal contracts with NASA, the Department of Defense and intelligence agencies, which all have some authority to review M&A transactions for national security and other risks.
Laurence des Cars, director of the Louvre Museum, has resigned months after thieves stole French crown jewels valued at an estimated $102 million in a...
Twenty-two people have died and hundreds have been displaced in Brazil’s Minas Gerais state on Tuesday (24 February) after relentless, record-breaki...
The military spokesperson for the M23 rebel movement, Willy Ngoma, was killed in an army drone strike in eastern Democratic Republic of Congo early on...
Iran is prepared to take any necessary steps to secure a deal with the United States, Deputy Foreign Minister Majid Takht-Ravanchi said on Tuesday (24...
Expanding cross-border commerce and strengthening regional trade corridors topped the agenda in Baku on Tuesday (24 February), as senior lawmakers fro...
Laurence des Cars, director of the Louvre Museum, has resigned months after thieves stole French crown jewels valued at an estimated $102 million in a daylight raid that prompted a parliamentary inquiry.
Ukraine signalled its readiness for fast-track European Union membership in Kyiv on Tuesday (24 February), as European leaders pledged continued political and financial backing and insisted Russia would gain nothing at the negotiating table.
Four years into Russia’s invasion of Ukraine, the war can be measured not only in lives and territory, but in money. In Part One, the war’s cost was measured in casualties and kilometres. In Part Two, it is measured in billions of dollars.
The Taliban in Kabul has rejected Russian claims that more than 23,000 militants from around 20 international terror groups are currently operating within Afghanistan.
Italy said a fond farewell to the Winter Olympics on Sunday with an open-air ceremony in the ancient Verona Arena that celebrated art and sporting achievement at a Games lauded as a model for how to stage such events.
The United States and Iran will hold a new round of nuclear negotiations in Geneva on Thursday as part of renewed diplomatic efforts to reach a potential agreement, Oman’s Foreign Minister Badr Albusaidi announced on Sunday.
Further Iran-U.S. nuclear talks are scheduled in Geneva on Thursday (26 February) as diplomacy resumes over Tehran’s nuclear programme following earlier mediation efforts. But will the talks move Iran-U.S. negotiations closer to a deal, and what should be expected from the meeting?
Mexican authorities said on Sunday that Nemesio Oseguera Cervantes, known as El Mencho and head of the Jalisco New Generation Cartel (CJNG), was killed during a military operation in the western state of Jalisco.
The European Parliament’s trade chief has urged a temporary suspension of the EU–U.S. trade agreement approval, citing “tariff chaos” following President Donald Trump’s new 15% tariffs and a U.S. Supreme Court ruling invalidating his previous global tariff programme.
The chief executive of Google DeepMind, Demis Hassabis, has called for more urgent research into the risks posed by artificial intelligence, warning that stronger safeguards are needed as systems become more advanced.
NASA successfully completed a critical fueling rehearsal on Thursday (19 February) for its giant moon rocket, Artemis II, after earlier hydrogen leaks disrupted preparations for the next crewed lunar mission. The launch is scheduled for 6 March, according to the latest information from NASA.
ByteDance will take steps to prevent the unauthorised use of intellectual property on its artificial intelligence (AI) video generator Seedance 2.0, the Chinese technology firm said on Monday.
The formation of a black hole can be quite a violent event, with a massive dying star blowing up and some of its remnants collapsing to form an exceptionally dense object with gravity so strong not even light can escape.
BMW is recalling a mid six figure number of vehicles worldwide after identifying a potential fire risk linked to the starter motor.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment