Elon Musk’s rocket maker SpaceX has acquired his artificial intelligence startup xAI in a deal that will value the company at $1.25 trillion, CNBC’s David Faber has confirmed.
The record-setting deal will be the largest merger of all time and values SpaceX at $1 trillion and xAI at $250 billion, according to documents viewed by CNBC.
Musk announced the deal in a blog post on Monday, saying he’s creating “the most ambitious, vertically-integrated innovation engine on (and off) Earth, with AI, rockets, space-based internet,” and the X social media platform.” The main reason for the merger, he said, is to better build “orbital data centers.”
Bloomberg previously reported the merger valuation.
The deal, which is structured as a share exchange, comes ahead of a highly anticipated blockbuster initial public offering for SpaceX later this year.
Shares of xAI will be converted into 0.1433 shares of SpaceX stock. Documents show xAI at $75.46 per share and SpaceX at $526.59 a share.
Bank valuation documents viewed by CNBC value SpaceX at between $859 billion and $1.26 trillion and xAI at $219 billion and $294 billion.
