SpaceX memo confirms merger with xAI, valuation reaches $1.25 trillion

According to informed sources, Musk plans to merge SpaceX with xAI, aiming to integrate its increasingly large strategic layout in the fields of artificial intelligence and space exploration.

The merger plan is expected to be announced on Monday through an internal memorandum. The merged company is anticipated to be priced at about $527 per share, with a company valuation reaching $1.25 trillion. SpaceX and xAI have not yet responded. This move further intertwines Musk's various businesses. He acquired the social media platform Twitter (later renamed X) at the end of 2022, and subsequently merged the company with xAI for $33 billion. xAI also operates the chatbot Grok, which consumes about $1 billion per month to achieve its goal of deep understanding of the universe. Merging with SpaceX will integrate funding, talent, and computing resources while blurring corporate boundaries. This merger may realize Musk's vision of deploying data centers in space to support complex AI computations. According to documents submitted last Friday, SpaceX is applying for permission for this plan, intending to launch up to 1 million satellites into Earth orbit.