SpaceX and xAI Merge

SpaceX announced that it has acquired xAI and they want to build a vertically integrated innovation engine on Earth and beyond. In the statement signed by Elon Musk, it is argued that existing infrastructure solutions are too terrestrial, the data centers and energy required for technologies like advanced AI can only be accomplished through space-based solutions.

Musk’s use of terms such as space-based AI in the announcement is particularly striking, alongside explicit references to plans for building data centers in orbit.

Following Tesla’s investment in xAI lately, this acquisition further blurs the lines between the data, compute and infrastructure resources controlled by Musk’s companies. While no official confirmation has been made, reports suggest that SpaceX might be the most valuable private (non-publicly traded) company in the world after this merger.