Elon Musk mulls merging SpaceX with artificial intelligence firm xAI: report | Latest Tech News
Elon Musk is reportedly in “advanced talks” to merge his rocket company SpaceX with his artificial intelligence firm xAI.
The two entities, each of that are privately held, have told some of their traders about the plans, Bloomberg reported Monday, citing people acquainted with the matter.
An announcement about the merger may come as soon as this week, according to the outlet, though sources said the negotiations may take longer or even crumble fully.
Elon Musk waves to the gang during the 56th annual World Economic Forum (WEF) assembly in Davos, Switzerland, on Jan. 22. REUTERS
The Post has reached out to SpaceX and xAI for remark.
The latter, which owns the social media website X and runs the Grok chatbot, raised funds at a $200 billion valuation in the autumn. Meanwhile, SpaceX, which has enormous rocket contracts with NASA and affords the Starlink satellite tv for pc web service, is aiming to raise $50 billion at a $1.5 billion valuation, according to a number of stories.
A possible merger would influence SpaceX’s reported plans to go public. Last week, the Financial Times reported Musk had floated holding an IPO in mid-June to coincide with a uncommon planetary alignment and his fifty fifth birthday.
Musk has said he needs to launch AI data facilities into space – an costly plan that would require SpaceX’s capabilities and a vital money infusion.
xAI and Grok have told some of their traders about the plans, Bloomberg reported. REUTERS
A SpaceX Falcon Heavy rocket lifts off from NASA’s Kennedy Space Center in Florida in June 2024. AFP via Getty Images
Last week, SpaceX requested the Federal Communications Commission for permission to launch up to 1 million satellites into orbit to help “accommodate the explosive growth of data demands driven by AI,” according to a submitting.
“By directly harnessing near-constant solar power with little operating or maintenance costs, these satellites will achieve transformative cost and energy efficiency while significantly reducing the environmental impact associated with terrestrial data centers,” SpaceX wrote in the submitting.
Musk serves as CEO of both SpaceX and xAI. He’s also the boss of electric car maker Tesla, brain-chip startup Neuralink and tunnel-digging firm The Boring Company.
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