SpaceX acquires xAI in record deal as Musk looks to unify AI and space ambitions

Elon Musk said on Monday that SpaceX has acquired his artificial intelligence startup, xAI, in a record-setting deal that unifies the billionaire's AI and space ambitions by combining the rocket-and-satellite company with the maker of the Grok chatbot. The deal, first reported last week, represents one of the most ambitious tie-ups in the technology sector yet, combining a space-and-defense contractor with a fast-growing AI developer whose costs are largely driven by chips, data centers and energy. It could also bolster SpaceX's data-center ambitions as Musk competes with rivals such as Alphabet's Google, Meta, Amazon-backed Anthropic and OpenAI in the AI sector. In a time of both misinformation and too much information, quality journalism is more crucial than ever. By subscribing, you can help us get the story right. With your current subscription plan you can comment on stories.