Texas, February 3 (ANI): Elon Musk confirmed that SpaceX has acquired his artificial intelligence start-up xAI.
Musk posted a note about the deal via SpaceX and shared it on his social platform X. xAI, which was merged with X last year, owns and operates the social network following that combination.
Bloomberg reported that the combined SpaceX–xAI entity has a valuation of USD 1.25 trillion and that SpaceX plans an initial public offering later this year. CNBC said the merger was completed on Monday.
xAI’s flagship product Grok is under investigation in the European Union over an image-generation feature amid concerns it was used to create sexualized images; xAI says it has added restrictions that limit image editing.
In his note on the merger, Musk said the combination will form an “innovation engine” bringing together AI, rockets, space-based internet, and media under one roof. He added: “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!”
A SpaceX press release said the merger will ultimately enable placing AI data centers in space powered by solar energy. Musk estimated that “within 2 to 3 years, the lowest cost way to generate AI compute will be in space,” saying that such cost-efficiency will accelerate model training and data processing, driving breakthroughs in physics and technology.
SpaceX said the new constellation will build on existing space sustainability design and operational strategies, including end-of-life disposal practices used for its current broadband satellites.
The announcement follows a recent SpaceX filing with the U.S. Federal Communications Commission proposing deployment and operation of a constellation of up to one million satellites designed as orbital data centers with unprecedented compute capacity for advanced AI models and applications.
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