Elon Musk’s SpaceX acquires his AI start-up with vision to build data centres in space

Mr Elon Musk’s SpaceX has acquired xAI in a deal that encompasses the billionaire’s increasingly costly ambitions to dominate artificial intelligence (AI) and space exploration.

The tie-up may crystallise Mr Musk’s vision to put data centres in space to do complex computing for AI. SpaceX is requesting permission to launch as many as a million satellites into earth’s orbit for the plan.

The deal, which gives the combined company a valuation of US$1.25 trillion (S$1.6 trillion), was announced to SpaceX employees in a memo on Feb 2.

SpaceX acquired xAI to “form the most ambitious, vertically integrated innovation engine on (and off) earth, with AI, rockets, space-based internet, direct-to-mobile device communications and the world’s foremost real-time information and free speech platform”, according to the statement by Mr Musk.

The transaction values SpaceX at US$1 trillion, and xAI at US$250 billion, according to a person familiar with the matter.

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