Elon Musk has been making waves in the tech industry with his recent moves. A potential merger between Tesla, SpaceX, and xAI is on the horizon, and it’s expected to be a game-changer.
The Trillion-Dollar Deal
The recent merger between SpaceX and xAI has valued SpaceX at $1 trillion and xAI at $250 billion. This deal is not just a significant milestone for the companies involved, but it also has implications for Tesla Inc. Analysts are exploring the potential implications of this merger and how it will affect the tech giant.
SpaceX’s Orbital Data Center Strategy
SpaceX is seeking approval from the Federal Communications Commission (FCC) to launch up to one million satellites for its orbital data center strategy. These satellites are expected to generate a significant amount of power, with 100 kW of compute per ton. As demand for data center power increases, this merger aims to create a new path to generate low-cost AI compute.
The AI Revolution
The merger is aimed at bringing together the top internet/space exploration company with the top data center builders. Tesla is already linked to xAI, having invested $2 billion into the company. In the long term, analysts anticipate the creation of an “AI juggernaut” that capitalizes on robotics and provides energy for the AI revolution.
A Potential Combination of Tesla, SpaceX, and xAI
Analysts predict that Elon Musk will look to combine Tesla with SpaceX and xAI over time. This could lead to more “cross-pollination” between Tesla and SpaceX over the coming year, which is expected to be bullish for the Tesla story.
The Future of AI
Musk’s ultimate goal is to own and control more of the AI ecosystem. The potential combination of SpaceX and Tesla could be the holy grail, giving the connected tissue between both disruptive stalwarts looking to lead the AI revolution. With this merger, Elon Musk is poised to make a significant impact on the tech industry and shape the future of AI.