SpaceX announced Monday that it has acquired xAI, forming a unified company that combines rockets, satellite internet, direct-to-device communications, and real-time information platforms. The move was reported after Elon Musk said the merger aims to scale AI compute and extend capabilities into space.
Musk wrote in a statement, “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,” and employees at both companies were notified Monday.
The combined company carries a valuation of about $1.25 trillion. Prior private valuations placed SpaceX at roughly $800 billion and xAI at about $230 billion after a $20 billion funding round.
The merger arrives before a planned SpaceX initial public offering that had been pitched to raise about $50 billion and value the firm near $1.5 trillion. (Ed. note: the combined valuation is roughly $250 billion below that earlier $1.5 trillion suggestion.)
Musk said moving AI compute to space will reduce costs and energy burdens on Earth. He added, “My estimate is that within 2 to 3 years, the lowest cost way to generate AI compute will be in space. This cost-efficiency alone will enable innovative companies to forge ahead in training their AI models and processing data at unprecedented speeds and scales, accelerating breakthroughs in our understanding of physics and invention of technologies to benefit humanity.”
