SpaceX Buys xAI
Elon Musk’s SpaceX acquired his AI company, xAI, forming the largest private company in the world.
Context
SpaceX was valued at around $800B before the deal, making it the world’s most valuable private company even before the acquisition. The rocket manufacturer generates significant revenue from its Starlink satellite network of more than 9,000 satellites, which now brings more revenue than its rocket launch sales. xAI raised $20B in January at a $230B valuation.
Acquisition Details
On Monday, SpaceX acquired xAI in a deal that is expected to be valued at $1.25T. The transaction brought together SpaceX’s rockets and Starlink satellite network with xAI’s Grok chatbot and social media platform X.
