00:00Elon Musk's SpaceX has acquired AI startup XAI, also owned by Elon Musk, in a record-breaking merger valuing the combined deal at $1.25 trillion, making it the largest merger of all time.
00:14The transaction values SpaceX at $1 trillion in XAI at about $250 billion, with Musk saying the goal is to build a vertically integrated empire spanning AI, rockets, space-based internet, and social media.
00:27A key motivation is funding XAI's cash-intensive push to compete with rivals like OpenAI and Anthropic, while also enabling the development of orbital data centers powered by SpaceX's satellite infrastructure.
00:40The deal comes just ahead of a highly anticipated SpaceX IPO, which could value the company as high as $1.5 trillion later this year.
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