"According to reports, Elon Musk is in the exploratory stage of a potential merger between SpaceX, his reusable rocket company, and xAI, Musk's burgeoning AI side-project, which is also the parent company of X the app. The deal would bring together two of Musk's biggest speculative projects, and combine his space exploration plans with his AI development ambitions, forming a trillion-dollar business entity that would then be able to more easily share resources across his futuristic concepts."
"According to Bloomberg, the main catalyst for the proposed merger would be xAI's demand for capital, with Musk's AI project burning through around $1 billion per month at present. The need to keep expanding its data processing capacity, in order to drive better, more responsive AI tools, has left Musk looking to alternative intake sources, in order to take on OpenAI, Meta and Google in the expanding AI race."
Elon Musk confirmed a merger of xAI and SpaceX to create a vertically integrated innovation engine combining AI, rockets, space-based internet, direct-to-mobile communications and the X platform. The merger would consolidate Musk's AI and space ventures into a single, resource-sharing entity capable of funding capital-intensive AI development and supporting X amid revenue challenges. xAI is burning roughly $1 billion per month, driving the need for new capital and expanded data processing. The combined company could deploy space-based data centers, seek authorization for up to one million satellites, and accelerate Starship development to compete for future launches.
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