Musk's Mega Merger: SpaceX and xAI Set Unprecedented Record

SpaceX has acquired Elon Musk's AI startup, xAI, in a monumental deal merging space exploration with artificial intelligence. Valued at $1 trillion for SpaceX and $250 billion for xAI, the merger sets a new record in technology sector M&A deals. The merger may face scrutiny over Musk's interconnected ventures.

In a groundbreaking move, Elon Musk's SpaceX has acquired his artificial intelligence startup, xAI, setting a new benchmark for mergers and acquisitions in the technology sector. The deal, reported by Reuters, combines Musk's cutting-edge satellite and rocket endeavors with the developer of the Grok chatbot.

Valuing SpaceX at $1 trillion and xAI at $250 billion, this acquisition becomes the largest globally, surpassing the former record set by Vodafone's 2000 acquisition of Germany's Mannesmann in a $203 billion deal. The merged entity is set to redefine the frontier of AI and space exploration, with plans to initiate a public offering this year.

This consolidation underscores Musk's strategy of integrating his various companies into a cohesive network, often referred to as the "Muskonomy." However, the agreement might face scrutiny from regulatory bodies due to potential conflicts of interest given Musk's varied leadership roles across firms.

(With inputs from agencies.)