STORY: Elon Musk said Monday that SpaceX has acquired his artificial-intelligence startup xAI.The record-setting deal unifies Musk’s AI and space ambitions by combining the rocket-and-satellite company with the maker of the Grok chatbot.According to a person familiar with the matter, the transaction values SpaceX at $1 trillion, and xAI at $250 billion.The purchase sets a new record for the world’s largest merger and acquisition deal. It also comes as the space company plans a blockbuster public offering this year that could value it at over $1.5 trillion, according to two people familiar with the matter.The deal could also bolster SpaceX’s data-center ambitions as Musk competes with rivals in the AI sector.SpaceX, xAI and Musk did not immediately respond to requests for comment.The agreement could draw scrutiny from regulators and investors over governance, valuation and conflicts of interest.SpaceX also holds billions of dollars in federal contracts with NASA, the Department of Defense and intelligence agencies.These contracts give the agencies some authority to review M&A transactions for national security and other risks.
