SpaceX in Merger Talks with xAI Ahead of Planned IPO
SpaceX is in discussions to merge with xAI as it prepares for a potential IPO this year, expected to be valued over $1 trillion. The proposed merger would involve exchanging xAI shares for SpaceX stock.
Two entities were established in Nevada on January 21 to facilitate the transaction, with SpaceX's CFO Bret Johnsen listed as a managing member. Some xAI executives may have the option for cash instead of shares.
SpaceX, valued at $800 billion in a recent private stock sale, aims to incorporate AI processing in space to reduce computational costs. xAI is working on a supercomputer named Colossus in Memphis, Tennessee, for AI training. Analysts question the feasibility of building space-based data centers. The merger could enhance SpaceX's position for defense contracts as the Pentagon integrates AI into military networks. xAI has a contract worth up to $200 million with the Pentagon.
