Elon Musk is completing the merger of aerospace company SpaceX and artificial intelligence startup xAI. The new structure is to become one of the most expensive private companies in the world, and the key project will be to launch powerful servers for data processing into Earth’s orbit. This was reported on the SpaceX website.
The total cost of the combined structure will reach approximately $1 trillion. SpaceX is valued at $800 billion, while xAI is valued at $200 billion.
The main reason for the merger is financial stability for xAI. The development of advanced artificial intelligence models costs the company about $1 billion per month. Such expenses create the risk of quickly depleting funds. The merger with the profitable SpaceX will provide constant funding for energy-intensive projects.
The new corporation will be led by Gwynne Shotwell, president of SpaceX, and Anthony Armstrong, chief financial officer of xAI and Company X.
The Starship rocket will launch the equipment into orbit. Musk predicts that in 2-3 years, space will become the cheapest place to train artificial intelligence models.