SpaceX has acquired Elon Musk’s artificial intelligence startup xAI in an all-stock transaction that values the combined entity at $1.25 trillion, according to details shared with investors.
The deal comes as SpaceX prepares for what is expected to be the largest initial public offering (IPO) in history. The company continues to target a June initial public offering that could raise to $50 billion. If completed, the listing would surpass the $29 billion raised by Saudi Aramco in its 2019 IPO.
Valuation and Share Conversion Details
SpaceX assigned itself a valuation of $1 trillion, up from the $800 billion valuation reached during a secondary stock sale in December. xAI was valued at $250 billion, based on a recent $20 billion funding round that priced the two-year-old company at $230 billion.
SpaceX Chief Financial Officer Bret Johnsen told investors during a call on Monday that shares of the combined company would be priced at $527. He added that xAI shares would convert into SpaceX stock at an exchange rate of roughly seven to one.
Musk Explains Space-Based AI
Elon Musk said the most cost-effective way to handle AI computation within the next two to three years will be in space. He argued that global electricity demand driven by AI cannot be met through land-based infrastructure without causing environmental strain and hardship for communities.
Satellite Expansion
SpaceX filed an application last Friday seeking permission to launch up to one million satellites into Earth’s orbit.
xAI previously merged with Musk’s social media platform X in March through a $113 billion transaction. Separately, Tesla announced a $2 billion investment in xAI last week.
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“xAI was valued at 250 billion, based on a recent 20 billion funding round that priced the two-year-old company at 230 billion.”
This is make believe at its finest.
Selling your own company and assigning your own value to the shares you sold to yourself.
SpaceX assigned itself a valuation of 1 trillion, up from the 800 billion valuation. Do you even beat how immature that sounds. So we can just make a value in our head. And everyone should believe it
If this is how you get rich. Then kindly never educate young kids. Just make them conmen. Honesty and integrity is no more