Elon Musk’s AI firm xAI, which incorporates Elon Musk’s social media platform X, has simply been acquired by Elon Musk’s house firm SpaceX.
The merging of all of Elon Musk’s “X” corporations has now created a single entity with a valuation of $1.25 trillion. SpaceX has reportedly been planning to carry an preliminary public providing (IPO) later this yr. The information of SpaceX’s acquisition of xAI was first reported by Bloomberg after which confirmed by SpaceX with a press release posted on its web site on Monday.
“SpaceX has acquired xAI to kind essentially the most formidable, vertically-integrated innovation engine on (and off) Earth, with AI, rockets, space-based web, direct-to-mobile gadget communications and the world’s foremost real-time info and free speech platform,” reads SpaceX’s assertion. “This marks not simply the following chapter, however the subsequent ebook in SpaceX and xAI’s mission: scaling to make a sentient solar to grasp the Universe and prolong the sunshine of consciousness to the celebs!”
The assertion makes reference to all the merchandise now underneath the SpaceX umbrella, together with its satellite tv for pc web service Starlink.
Musk’s AI firm xAI acquired the social media platform X, previously Twitter, in an all-stock transaction final March. The deal valued X at $33 billion, or $11 billion lower than what Musk paid for then-Twitter in 2022.
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As Bloomberg factors out, xAI, alongside its chatbot product Grok, spends round $1 billion every month in operation prices. The SpaceX merger helps pool every firm’s assets.
As well as, the mixture of SpaceX and xAI may additionally assist transfer alongside Musk’s intent to place AI knowledge facilities in house. SpaceX made a submitting with the Federal Communications Fee (FCC) final week searching for permission to launch “1,000,000 satellites” for the endeavor.
Within the assertion posted on the SpaceX web site, Musk particularly made point out of the challenge when discussing the merger.
“In the long run, space-based AI is clearly the one approach to scale,” Musk mentioned. “To harness even a millionth of our Solar’s power would require over 1,000,000 instances extra power than our civilization presently makes use of! The one logical answer due to this fact is to move these resource-intensive efforts to a location with huge energy and house. I imply, house is known as ‘house’ for a motive.”
Musk ended that assertion with a cry laughing emoji.
