Elon Musk's SpaceX to Acquire AI Startup xAI, Consolidating Tech Ventures

Washington D.C. – Elon Musk's rocket company SpaceX is set to acquire the Artificial Intelligence (AI) startup xAI. SpaceX confirmed the merger on its website by publishing an internal memo from Musk.

 This integration will create an innovation engine, Musk stated in the memo. The resulting company will house AI, rocket technology, satellite internet, and digital media under one umbrella. The formal value of the deal has not been disclosed. However, sources estimate xAI's valuation at around $125 billion and SpaceX's at approximately $1 trillion. This acquisition will make SpaceX the world's most valuable private company.

Previously, Tesla had invested $2 billion in xAI. Musk had stated that xAI would coordinate Tesla's automated robot factories like an orchestra conductor. However, some shareholders protested, claiming Tesla's resources were being diverted to Musk's other company. Analyst Emily Zheng noted that this acquisition appears linked to SpaceX's potential IPO preparations. Major tech companies are moving toward public markets due to high computing, energy, and infrastructure costs. Musk asserted that only space-based AI will be truly scalable in the long term, stating that AI satellite launches will be an immediate priority.