SpaceX’s acquisition of xAI creates business worth $1.25tn but whether premise behind deal will work is questioned
The acquisition of xAI by SpaceX is a typical Elon Musk deal: big numbers backed by big ambition.
As well as extending “the light of consciousness to the stars”, as Musk described it, the transaction creates a business worth $1.25tn (£920bn) by combining Musk’s rocket company with his artificial intelligence startup. It values SpaceX at $1tn and xAI at $250bn, with a stock market flotation expected in June to time with Musk’s birthday and a planetary alignment.
However, there are questions over the deal, such as whether it is good for SpaceX’s non-Musk shareholders and whether the technological premise behind it can succeed.
For Musk, a key part of the deal’s rationale is to move datacentres – the central nervous system of AI tools – into space.
