Feb 9 (Reuters) - Apollo Global Management is close to finalizing a roughly $3.4 billion loan to an investment vehicle that plans to ​buy Nvidia chips and lease them to Elon Musk's xAI, The ‌Information reported on Monday, citing a person familiar with the matter. Less than a week ago, ‌Musk announced that SpaceX acquired the artificial intelligence company he also leads in a deal that values the rocket and satellite company at $1 trillion and the AI outfit at $250 billion. Musk has said the rationale ...

Core Insights - Tesla and SpaceX are speculated to merge, potentially easing SpaceX's IPO process by leveraging Tesla's market presence [2] - SpaceX has acquired xAI in a $250 billion all-stock deal, raising questions about further consolidation of Musk's companies [3] - The merger aims to create a vertically integrated entity combining SpaceX's space technology with xAI's AI capabilities [4] Company Valuation - The combined entity is valued at $1.25 trillion, with SpaceX valued at $1 trillion and xAI at $250 billion prior to the merger [5] Strategic Goals - SpaceX plans to deploy a million-satellite constellation for orbital data centers, targeting an initial AI compute capacity of 100 gigawatts, scaling to one terawatt annually [5][8] - The merger supports Musk's vision of lunar bases and Mars settlements, positioning the company for broader expansion [5] Challenges - Significant challenges include the need for large radiators for cooling in space and the impact of cosmic radiation on electronics, which complicates the deployment of space-based AI [6] - Current launch costs remain high at $2,000 to $2,500 per kilogram, with a need for drastic reductions to make space data centers viable [7] - Musk believes costs could drop to $200 per kilogram within two to three years, enabling competitive space-based AI computing [7]

This is CNBC's Morning Squawk newsletter. Subscribe here to receive future editions in your inbox.Happy Tuesday. I did my workout studio's Hyrox-themed class yesterday, which not only left me sore but also with a better understanding of what all the hype in the fitness business is about.S&P 500 futures ticked higher this morning. The stock market is coming off a winning day.Here are five key things investors need to know to start the trading day:1. Take-off preparationsElon Musk attends the 56th annual Worl ...