Elon Musk's SpaceX has acquired the AI startup xAI in a landmark merger, integrating Musk's AI and space initiatives. The $1.25 trillion deal combines the world’s most valuable private firm with a fast-emerging AI player.

In a surprising turn of events, SpaceX has officially acquired Elon Musk’s artificial intelligence company, xAI.With this merger the combined company is now valued at $1.25 trillion, as per Bloomberg.

Elon Musk said today that SpaceX has acquired his artificial-intelligence startup xAI in a record-setting deal that unifies Musk’s AI and space ambitions by combining the rocket-and-satellite company with the maker of the Grok chatbot.

Elon Musk's SpaceX has acquired xAI in the largest ever M&A deal, creating a unified tech empire that strengthens Musk's AI and space endeavors. The merger, valued at over $1 trillion for SpaceX and $250 billion for xAI,