Elon Musk announced that SpaceX would merge with his artificial intelligence company, xAI, creating the world’s most valuable private company.
The new combined company is valued at around $1.25 trillion, Bloomberg News reported. The valuation is over double that of its nearest private competitor, OpenAI, valued at around $500 billion.
In his announcement of the merger, Musk said the move was a bid to “accelerate humanity’s future.”
“SpaceX has acquired xAI to form the most ambitious, vertically-integrated innovation engine on (and off) Earth, with AI, rockets, space-based internet, direct-to-mobile device communications and the world’s foremost real-time information and free speech platform. This marks not just the next chapter, but the next book in SpaceX and xAI’s mission: scaling to make a sentient sun to understand the Universe and extend the light of consciousness to the stars!” he said.
The tech mogul argued that the main purpose of the move was to build data centers in space, as the initiatives are energy-intensive on land.
“The only logical solution therefore is to transport these resource-intensive efforts to a location with vast power and space. I mean, space is called ‘space’ for a reason,” Musk wrote with a laughing emoji.
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He estimated that it would only take two to three years to make spaceborne data centers more cost-effective than those on Earth.
Musk’s xAI is one of the leading companies in the global AI race, which has sucked in trillions in investment over the past few years. His company utilizes data from X, formerly known as Twitter, which he purchased in 2022.
