Merger with loss-making xAI looks to some investors more like a bailout than a rocket trip to the future
To Elon Musk’s fan club, there is nothing to see apart from more evidence of the great man’s visionary genius. SpaceX, the rocket firm, is buying xAI, the artificial intelligence developer, and the combination of these two Musk-controlled entities is being valued at $1.25tn (£910bn). Feel the positive vibes ahead of a stock market debut due in June! The most valuable private company in history! The largest ever transaction!
Or, as Musk described it, he is creating “the most ambitious, vertically-integrated innovation engine on (and off) Earth, with AI, rockets, space-based internet, direct-to-mobile device communications and the world’s foremost real-time information and free-speech platform”.
