SpaceX, Elon Musk’s satellite unit, has acquired his start-up xAI in a monumental deal valuing the combined entity at $1.25 trillion. The billionaire went on to insist that space-based AI will offer the lowest-cost way to generate compute power.
In a detailed statement, he declared: “In the long term, space-based AI is obviously the only way to scale”. He added the cost-efficiency alone will enable “innovative companies to forge ahead in training their AI models and processing data at unprecedented speeds and scales”.
The deal gives SpaceX a valuation of $1 trillion, and xAI a value of $250 billion, Bloomberg reported. The statement did not include details on the all-share offering, including price and valuation.
SpaceX filed a request on the 2nd of February with the US Federal Communications Commission to deploy up to 1 million satellites. The company is looking to hold an initial public offering this year.
In early January, xAI completed a funding round, raising $20 billion from wide range of investors, including Nvidia and Cisco. The unit operates X and AI chatbot Grok.
Source: Mobile World Live
Image Credit: SpaceX