Musk's Smart Acquisition of xAI
According to insiders, Elon Musk utilized a two-step merger process in the acquisition of xAI by SpaceX. This strategic move not only avoided the burden of billions in debt but also provided shareholders with favorable tax implications.
Maintaining xAI's Independence
Although the deal was officially announced on Monday, Musk chose not to fully merge the two companies. Instead, he decided to keep xAI as a wholly-owned subsidiary of SpaceX. This structure allows xAI to continue operating independently while benefiting from SpaceX's backing.
- Avoiding debt pressure
- Securing tax benefits
- Maintaining legal independence for xAI
New Entity Valued at $1.25 Trillion
Following the acquisition, the new company is now valued at an astonishing $1.25 trillion. Plans are underway for an IPO later this year, aimed at funding Musk's ambitious vision of building a data center in space. Once implemented, the listing is expected to draw significant attention from the financial world.
xAI to Continue Operating X Platform and Grok Bot
Currently, xAI manages the social media platform X and has developed the Grok chatbot. As a wholly-owned subsidiary of SpaceX, xAI will continue advancing these initiatives while receiving greater resource support.