On the 2nd, Space Exploration Technologies Corp (SpaceX), founded by American entrepreneur Elon Musk, issued a statement announcing the acquisition of xAI, an artificial intelligence startup also owned by Musk, aiming to integrate innovative resources across AI, rockets, and space internet domains.
The statement said that SpaceX's acquisition of xAI is intended to "build the most ambitious, vertically integrated innovation engine on (and off) the planet, integrating artificial intelligence, rockets, space-based internet, direct-to-mobile communication, and leading global real-time information and free speech platforms."
At the same time, Musk stated that in the next two to three years, the lowest-cost method for AI computation will be to conduct it in space.
According to informed sources, the deal values SpaceX at $1 trillion (about 3.939 trillion Malaysian Ringgit) and xAI at $250 billion.
Bloomberg quoted some insiders as saying that the post-merger company's valuation will reach $1.25 trillion.
The insiders said that after the merger, the company's stock is expected to be valued at $526.59 per share. The transaction will be conducted entirely in stock.