Elon Musk’s SpaceX officially acquires Elon Musk’s xAI, with plan to build data centers in space

Elon Musk’s SpaceX officially acquires Elon Musk’s xAI, with plan to build data centers in space

SpaceX has acquired Elon Musk’s artificial intelligence startup, xAI, creating the world’s most helpful personal company, the spaceflight company announced Monday.

Musk, who’s also the CEO of SpaceX, wrote in a memo posted to the rocket company’s web site that the merger is essentially about creating space-based data centers — an thought he has develop into fixated on over the last few months.

“Current advances in AI are dependent on large terrestrial data centers, which require immense amounts of power and cooling. Global electricity demand for AI simply cannot be met with terrestrial solutions, even in the near term, without imposing hardship on communities and the environment,” he wrote. (xAI has been accused of imposing some of that hardship on the communities close to its data centers in Memphis, Tennessee.)

The tie-up values the mixed company at $1.25 trillion, according to Bloomberg News, which was first to report the completed deal. SpaceX has been reportedly getting ready an IPO for as early as June of this 12 months. It’s unclear whether or not the merger will have an effect on that timeline. Musk didn’t handle the IPO in his public memo.

The merger brings together two of Musk’s corporations, each with its personal monetary challenges. xAI is presently burning round $1 billion per 30 days, according to Bloomberg. SpaceX, meanwhile, generates as a lot as 80% of its income from launching its personal Starlink satellites, according to Reuters. Last 12 months, xAI acquired X, the social media company also owned by Musk, with Musk claiming a mixed company valuation of $113 billion.

Musk wrote in his memo that it should take a relentless stream of many — although he didn’t specify how many — satellites to create these space-based data centers, guaranteeing that SpaceX may have an even-larger fixed stream of income for the foreseeable future. (That income loop possible seems even more enticing when you think about that satellites are required to be de-orbited every 5 years by the Federal Communications Commission.)

While space data centers could also be the acknowledged objective, SpaceX and xAI have very different near-term aims.

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SpaceX is presently attempting to show that its Starship rocket is able to bringing astronauts to the moon and Mars, while xAI is competing with main artificial intelligence corporations like Google and OpenAI. The strain on xAI is so nice, the Washington Post reported Monday, that Musk loosened restrictions on the company’s chatbot Grok — which contributed to it changing into a tool for making AI-generated non-consensual sexual imagery of adults and kids.

Musk is also the head of Tesla, The Boring Company, and Neuralink. Tesla and SpaceX beforehand invested $2 billion each in xAI.

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