SpaceX Acquires xAI
Credit: SpaceX
SpaceX announced the acquisition of xAI. The company stated that this will “create one of the most ambitious vertically integrated innovation centers on Earth (and beyond).”
This isn’t the first merger in xAI’s history. Last year, the AI startup nominally merged with the social network X, which was known as Twitter before Elon Musk’s 2022 acquisition. On Monday, the billionaire confirmed that the acquisition of xAI by aerospace company SpaceX had taken place. Officially published documents cited by CNBC list February 2 as the closing date. SpaceX is now officially considered the “managing partner” of xAI Holdings, which includes X.
Interestingly, Middle Eastern investors have already invested in xAI’s capital. From this perspective, it’s difficult to say whether the SpaceX deal will attract the attention of US regulators, who monitor the origins of American companies’ capital. While xAI itself is a US government contractor, SpaceX has a far greater impact on US national security due to its involvement in government space programs.
According to Bloomberg, the combined company will be valued at $1.25 trillion. The deal comes ahead of SpaceX’s expected initial public offering, likely to be announced later this year.
