Musk combines space business with artificial intelligence

Elon Musk announced that SpaceX has acquired his artificial intelligence startup xAI. The deal brings together the space and satellite company with Grok, a chatbot developer, and represents one of the most ambitious mergers in the technology sector.

The merger connects a space and defense contractor with a fast-growing artificial intelligence developer whose costs are significantly influenced by chips, data centers, and energy. According to a source familiar with the deal, SpaceX is valued at $1 trillion and xAI at $250 billion.

xAI investors are to receive 0.1433 SpaceX shares for each share, with some managers opting for cash at $75.46 per share.

The purchase of xAI sets a new record for the largest global merger and acquisition, surpassing the 2000 transaction when Vodafone bought Mannesmann. According to another source, the combined company should have a share price of approximately $527. SpaceX was already the most valuable private company in the world.

The deal fits into Musk's long-term strategy of consolidating his business network, which also includes Tesla, Neuralink, and the Boring Company.

(reuters, max)