Elon Musk's SpaceX is taking over his artificial intelligence (AI) start-up, xAI, as the billionaire continues to unify some of his many business interests.
SpaceX confirmed the deal to acquire xAI, known for its Grok chatbot, posting a memo from Musk about the merger on its website.
In the note, Musk stated the combination would form an innovation engine, establishing a synergetic relationship among AI, rockets, space-based internet, and media.
Although the terms of the deal were not disclosed, a source indicated it valued xAI at $125bn (£91bn), while SpaceX is valued at $1tn, making it the most valuable private company ever.
In a prior announcement, Musk's Tesla had also declared a $2bn investment into xAI, suggesting a comprehensive integration of technology across his business empire.
Musk includes in his vision for the merger that space will solve energy challenges faced by AI firms, emphasizing space-based AI as crucial for scaling operations in the long run.
With SpaceX reportedly preparing for an IPO, analysts see this acquisition as positioning the company to present a unified growth strategy to potential public investors.
This transaction marks a significant consolidation of Musk’s business undertakings, as Neuralink and The Boring Company remain the only two smaller ventures outside his primary operations.
Having started as part of the social media platform X, xAI has grown quickly, now aiming to leverage advanced AI technologies alongside its new broader business context under SpaceX.
