Musk’s SpaceX Combines With xAI at $1.25 Trillion Valuation (2)

Elon Musk’s SpaceX has acquired xAI, in a deal that encompasses the billionaire’s increasingly costly ambitions to dominate artificial intelligence and space exploration.

The transaction was announced in a statement on SpaceX’s website signed by Musk and confirming an earlier Bloomberg News report.

The deal gives SpaceX a valuation of $1 trillion, and xAI a value of $250 billion, people familiar with the matter said. The combined company’s valuation of $1.25 trillion was announced to employees in a memo on Monday, some of the people said earlier.

SpaceX acquired xAI to “form the most ambitious, vertically-integrated innovation ...