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SpaceX In Advanced Talks To Combine With xAI: Report

Tyler Durden's Photo
by Tyler Durden
Authored...

First Reuters and Bloomberg last week, and now Bloomberg reports again early Monday that Elon Musk's SpaceX is in advanced talks to combine with his artificial intelligence firm xAI. The move appears to be a consolidation, positioning Musk's empire for the "data centers in space" theme as Starship approaches commercialization.

The financial media outlet says the potential SpaceX-xAI deal reporting is based on people familiar with the matter and has not been confirmed by Musk.

Here's more from the report:

The rocket and satellite maker and the artificial intelligence firm have informed some of their investors about the plans, the people said, asking not to be identified because the information is private. They could announce an agreement as soon as this week, some of the people said.

Deliberations are ongoing and talks could still drag on longer or fall apart, the people said.

We've seen this before, where Reuters and other MSM outlets have jumped the gun or published factually incorrect reporting on Musk's empire, prompting him to blast them for "fake news" on his X platform. So far, no denial.

Let's circle back to Bloomberg's report last week, in which it said: "xAI could benefit enormously from computing capacity provided by SpaceX's data centers in orbit, if the company can make the engineering work."

Bloomberg has also reported that SpaceX is planning an IPO as soon as June, though nothing has been confirmed. If so, it would roughly coincide with Musk's birthday. The IPO could raise up to $50 billion for SpaceX, potentially making it the largest IPO to ever.

What has been clear to ZeroHedge readers is that the next major theme, data centers in space, is coming quick. We've already explained how to position in this theme: Data Centers in Space Are Coming: Here's How to Profit.

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