SpaceX and xAI Merge, Creating a $1 Trillion Company: Musk to Run AI from Space, 1 Million ‘Data Center Satellites’ to be Launched
The world’s richest man, Elon Musk, has merged his rocket company SpaceX with his artificial intelligence startup xAI. The company that builds rockets and satellites will now work together with the company that created the AI chatbot ‘Grok’.
Following this acquisition, SpaceX is now not only a leader in space and defense, but also one of the world’s most powerful AI companies. Musk said this is not just a new chapter, but a whole new book in the mission of SpaceX and xAI.
SpaceX’s Valuation Reaches ₹90 Lakh Crore
After the acquisition, SpaceX’s total valuation has reached $1 trillion, or approximately ₹90 lakh crore.
xAI’s value is estimated at $250 billion, or approximately ₹22 lakh crore. This is the largest deal in the history of corporate mergers and acquisitions.
Some media reports suggest that under the deal, xAI investors will receive 0.1433 shares of SpaceX for every share they hold.
Some senior executives will also have the option to receive cash instead of shares, at a price of $75.46 per share.
Electricity Shortage on Earth, Space is the Only Option: The progress currently being made in AI relies on large data centers built on land. These require a huge amount of electricity and cooling, which also has an environmental impact.
The global demand for electricity for AI cannot be met by ground-based solutions. In the long term, space-based AI is the only way forward.
Data Centers to be Built in Space: Elon Musk said, “I estimate that within the next 2 to 3 years, the cheapest way to do AI computing will be in space. Due to the lower cost, new companies will be able to get far ahead in training their AI models and processing data.” This will accelerate the understanding of physics and the invention of new technologies for the benefit of humanity.
This merger comes at a time when SpaceX recently filed an application with the FCC last week. The company is seeking approval to launch one million “data center satellites” into Earth’s orbit.
