Khaberni - Elon Musk, the American billionaire, announced that he is working on merging his rocket manufacturing company "SpaceX" with his artificial intelligence startup "xAI".
Musk revealed this deal in a post, stating that he is about to create "the most ambitious and vertically integrated innovation engine on Earth (and beyond), combining artificial intelligence, rockets, and satellite internet," in addition to his social media platform "X".
According to Bloomberg, it is expected that the shares of the merged company will be priced in an initial public offering that would value it at $1.25 trillion.
Public records in Nevada, obtained by CNBC, indicate that the deal was completed on February 2, with Space Exploration Technologies Corp listed as a "managing member" of X.AI Holdings.
This transaction represents the largest merger within Musk's extensive portfolio, uniting two companies that have seen significant appreciation in private markets; SpaceX opened a secondary share sale last year at a valuation of $800 billion, while X.AI was valued at around $230 billion in a funding round that raised $20 billion earlier this year.
Tesla, the electric car manufacturer owned by Musk and the main source of his liquid wealth, said last week that it had agreed to invest about $2 billion in "X.AI". Earlier last year, Musk had expanded "X.AI" by merging it with his social network "X" (formerly Twitter).
"X.AI" is currently facing a series of new regulatory investigations, including from authorities in Europe, India, Australia, and California, after its artificial intelligence tools "Grok" enabled users to create and share sexual images of children and intimate images of adults without their consent, most of whom are women, based on photos shared online.
Musk places this deal within a future strategic plan to put data centers in space; recently, SpaceX requested a permit from the Federal Communications Commission to launch "up to one million" satellites as part of its "orbital data center".
Musk wrote: "My estimation is that within two to three years, the most cost-effective way to generate artificial intelligence computing will be in space. This cost efficiency alone will enable innovative companies to move forward in training their AI models and processing data with unprecedented speed and scale, thus accelerating breakthroughs in our understanding of physics and the invention of technologies that benefit humanity."
