Why Musk is tying rockets and AI together

Elon Musk has reached a new milestone in the world of technology. His space research company SpaceX has acquired his own artificial intelligence startup XAI.

Musk's decision has made SpaceX the world's most valuable private company. Although the financial terms of the deal were not disclosed, sources say that the merger of XAI, worth $125 billion, and SpaceX, worth $1 trillion, has created a huge and powerful organization.

In a memo, Elon Musk described the merger as an 'innovation engine'. He believes that this move will bring artificial intelligence, rocket technology, space-based internet and media all under one umbrella.

Musk's long-term goal is to set up data centers in space, which will meet the growing power needs of artificial intelligence. According to him, space-based AI will play an important role in the future development of human civilization on Mars and the expansion of the universe.

XAI originally started its journey from X (formerly Twitter) in 2022 and its main product is the ‘Grok’ chatbot. Although Grok’s image generation feature has recently been investigated by regulatory agencies in the European Union and the UK, its importance to investors has not diminished.

It is worth noting that last month, Musk’s electric car manufacturer Tesla announced an investment of $2 billion in XAI. Musk plans to use XAI as an ‘orchestra conductor’ to operate autonomous robots in Tesla factories.

According to market analysts, SpaceX has probably chosen this merger as a preparation for an IPO on the stock market. Emily Zheng, a senior analyst at PitchBook, believes that Musk is building this “super company” to present himself differently to public investors to cover the huge costs of AI and space infrastructure.

Except for two other smaller companies, Neuralink and The Boring Company, Musk now has almost all of his major businesses connected to each other.

Source: BBC.