Musk Unifies His Space and AI Firms as SpaceX Buys xAI
Elon Musk announced that SpaceX has acquired his AI company, xAI, in a deal that brings together two of his most high-profile ventures and tightens the links between his work in space technology and AI development. The deal is among the most far-reaching mergers seen in the tech industry. It pairs a major defense and aerospace contractor with a rapidly expanding AI business whose expenses are dominated by energy, chips, and data centers. The move could also strengthen SpaceX’s push into data infrastructure as Musk seeks to challenge established AI players such as Google, Meta, OpenAI, and Anthropic. According to a source familiar with the deal, the agreement assigns a valuation of $1 trillion to SpaceX and $250…