Elon Musk Is Rolling xAI into SpaceX

Elon Musk's rocket and satellite company SpaceX is acquiring his AI startup xAI, the centi-billionaire announced on Monday. In a blog post, Musk said the acquisition was warranted because global electricity demand for AI cannot be met with "terrestrial solutions," and Silicon Valley will soon need to build data centers in space to power its AI ambitions.

"In the long term, space-based AI is obviously the only way to scale," Musk wrote. "The only logical solution therefore is to transport these resource-intensive efforts to a location with vast power and space. I mean, space is called 'space' for a reason."

The deal, which pulls together two of Musk’s largest private ventures, values the combined entity at $1.25 trillion, making it the most valuable private company in the world, according to a report from Bloomberg.

Please select this link to read the complete article from WIRED.