Musk's SpaceX Acquires xAI in $1.25 Trillion Deal, Eyes AI and Space Dominance

• Elon Musk's SpaceX has acquired xAI, combining the two entities for a total valuation of $1.25 trillion.
• The deal aims to create a vertically integrated innovation engine focusing on AI, rockets, space-based internet, and direct-to-mobile communications.
• SpaceX is valued at $1 trillion and xAI at $250 billion in this all-stock transaction, with shares expected to be worth $526.59 each.
• Musk stated that in-space AI computations will be the most cost-effective within 2-3 years, accelerating AI model training and data processing.
• The merger pools capital, talent, and computing power, leveraging SpaceX's Starlink network revenue to fund xAI's capital-intensive operations.

Why It Matters: Elon Musk merges SpaceX and xAI in a $1.25 trillion deal, aiming to dominate AI and space exploration.