00:00What's Musk trying to achieve with this deal?
00:03Well, certainly he's kind of mentioned that the grand plan in some ways is to have these orbital data centers.
00:12They're taking the whole data center and AI literally into space.
00:16So that's kind of the grand vision with this particular combination.
00:20We're still expecting SpaceX to have an IPO later this year.
00:24And some reports have suggested perhaps for $1.5 trillion.
00:28There is another part to this, I think, as well, which is that actually when we look at numbers that people have been talking about, XAI has been loss-making.
00:38Some reports suggesting that it lost nearly $8 billion last year.
00:43So XAI effectively had run out of cash.
00:46So it kind of needed the combination and cash injection through Musk's empire.
00:50And I think that's an important reason as to why this has taken place now rather than waiting to do the transaction closer to the IPO for SpaceX itself.
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