The mega-merger will enable xAI to source billions from SpaceX’s upcoming IPO.
SpaceX is merging with Elon Musk’s xAI ahead of a planned initial public offering and the billionaire’s effort to create orbiting data centers.
The IPO is expected to generate tens of billions of dollars, giving xAI a new source of funds. Musk also says the arrangement is meant to pave the way for space-based data centers, days after SpaceX filed a plan to operate up to one million satellites for the project.
“In the long term, space-based AI is obviously the only way to scale,” Musk says in a post announcing the xAI deal, which also cites the benefits of solar energy. “The only logical solution therefore is to transport these resource-intensive efforts to a location with vast power and space.”
The Information reports SpaceX is spending $250 billion to acquire xAI, citing a person familiar with the deal.
