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Earlier this week, news came out that SpaceX CEO Elon Musk Considering taking your private space company public At a staggering valuation of $1.5 trillion on his birthday in June, it easily became the largest IPO in history.
Now, like reuters reportsMusk is hoping to go one step further, merging his AI startup XAI with SpaceX ahead of the IPO — a baffling plan that raises far more questions than answers.
Right now, we have no idea why a deal is on the table, let alone the financial specifics. The narrative will likely have something to do with SpaceX helping XAI launch data centers in Earth orbit – an idea that AI technology leaders have been courting lately, despite experts warning that it doesn’t make sense, citing concerns over economic feasibility and bandwidth limitations.
“The lowest-cost place to deploy AI would be in space,” Musk said. Said During an interview in Davos last week. “And that will come true within two years, maybe later in three years.”
Other companies, notably Jeff Bezos’ Blue Origin, are also considering launching thousands of satellites Ultimately serving data centers from space. Sundar Pichai has also been the CEO of Google fascinated by the ideaArguing that bringing data centers closer to the Sun could allow them to receive practically unlimited amounts of solar energy while in orbit.
according to reutersTwo entities in Nevada, including a limited liability company that lists SpaceX Chief Financial Officer Brett Johnson, have been set up to facilitate the swap of XAI and SpaceX shares. A source told the news agency that xAI executives may receive cash in exchange for SpaceX stock as part of the deal.
SpaceX has already agreed invest $2 billion at xAI last year as part of the startup’s fundraising round. Both XAI and SpaceX have won major defense contracts with the Pentagon. Earlier this year, Defense Secretary Pete Hegseth revealed Musk’s AI chatbot Grok will work inside the Pentagon network.
SpaceX is also developing a national security version of its Starlink broadband internet network, called StarShield, which is expected to use AI to track targets on the surface. reuters.
Merging his own businesses is nothing new for Musk. For example, last year they closed their social media echo chamber x to xai. Their beleaguered EV maker, Tesla, also seems to be joining in on the fun, announcing that Agreed to invest $2 billion in xAI Earlier this week, after some disastrous earnings reports.
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