Elon Musk’s SpaceX buys xAI in stunning deal valued at $1.25 trillion ahead of looming IPO

Core Insights - SpaceX has acquired xAI, resulting in a combined valuation of $1.25 trillion and plans for an IPO this year [1][5] - Elon Musk envisions the merger as a vertically integrated innovation engine combining AI, rockets, and space-based internet [2] - The acquisition aims to leverage space-based data centers to meet the growing electricity demand for AI services [3][4] Company Overview - The deal positions SpaceX and xAI as a formidable entity in the tech and aerospace sectors, with Musk at the helm of both companies [1][2] - xAI shares are valued at $526.59 each, contributing to the overall enterprise value of $1.25 trillion [5] - SpaceX is preparing for an IPO that could value the company at $800 billion, potentially marking the largest IPO in history [5] Industry Context - The rapid closure of the deal highlights the high expectations surrounding AI and concerns about a potentially overheated market [4] - Musk's history of intertwining his business interests raises questions about the financial dynamics between Tesla, xAI, and SpaceX [6][7] - Tesla's recent $2 billion investment in xAI and the sale of battery systems illustrate the interconnected nature of Musk's ventures [7]