US EditionWhy Elon Musk Just Created a $1.8 Trillion Space Monster
The $1.25 trillion merger aims to leverage SpaceX’s cash flow and IPO potential to build AI data centers in space, addressing AI's high capital demands, Musk said.
- This year, SpaceX merged with xAI in a deal valuing the combined businesses at $US1.25 trillion, combining SpaceX's launch and satellite assets with xAI and X to form a large 'space + AI' group.
- Facing cash needs, Musk turned to SpaceX, which plans a float this year, to raise $2.9 billion and support xAI's funding, according to sources.
- Financial figures reveal that xAI churned through $US9.5 billion in nine months and ran at an annualised rate above $US12.5 billion, while SpaceX generated more than $US2 billion positive cashflow last year, highlighting sector strain.
- With other AI-related floats planned this year, markets' willingness to finance massive AI-space projects will be stress-tested, and observers warn consolidation or wipeouts of weaker AI companies could accelerate.
- Musk says that within two or three years the cheapest AI computations will be in space, and he envisions SpaceX rockets carrying AI data centres, while critics say the logistics and costs are overlooked.
20 Articles
20 Articles
Elon Musk's wealth for the first time in history exceeded the 800 billion dollars threshold, after the announcement of the spectacular merger between his space company SpaceX and its artificial intelligence startup XAI, reports Forbes.
Elon Musk is merging SpaceX and xAI to build data centers in space — or so he says
On Monday, Elon Musk announced that he was merging two of his companies, SpaceX and xAI, in a deal said to be worth $1.25 trillion. The reason, Musk said in an announcement, was that in order for AI to grow, it needed to go to space. Elon Musk is merging SpaceX and xAI to build data centers in…
Elon Musk's wealth exceeded the 800 billion dollars threshold, after he announced the merger between his space company SpaceX and its start-up of artificial intelligence XAI, reports News.ro. Man of...
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