Musk's xAI, SpaceX combo is the biggest merger of all time, valued at $1.25 trillion

In a groundbreaking move, Elon Musk's aerospace company SpaceX has officially acquired his artificial intelligence venture xAI, with the deal valued at an unprecedented $1.25 trillion. This merger is set to become the largest of its kind in history, placing SpaceX's valuation at an impressive $1 trillion, while xAI is pegged at $250 billion, as confirmed by documents obtained by CNBC. Musk made the announcement via a blog post on Monday, outlining his vision for creating a 'vertically-integrated innovation engine' that spans both terrestrial and extraterrestrial domains. This ambitious initiative aims to combine AI technology with rockets, space-based internet services, and the X social media platform. According to Musk, a key motivation behind the merger is to enhance the construction of 'orbital data centers' crucial for future space exploration. The merger involves a share exchange, leading to a potential blockbuster initial public offering for SpaceX later this year. Under the terms, shares of xAI will convert into 0.1433 shares of SpaceX. Current valuations place xAI shares at approximately $75.46 each, while SpaceX shares are valued at around $526.59. Additional bank valuation documents suggest SpaceX's worth could range between $859 billion and $1.26 trillion, with xAI estimated between $219 billion and $294 billion.