The email notification glowed on my phone: SpaceX acquires xAI. My first thought was of Gwynne Shotwell, SpaceX’s COO, and the mountain of absurdity now on her plate. How much longer can one person translate Elon Musk for the rest of us?
The Trillion-Dollar Gamble: SpaceX and xAI Join Forces
Remember when everyone thought naming their kid “Khaleesi” was a good idea? Now, similar levels of excitement surround the rumored $1.5 trillion (€1.39 trillion) valuation of a combined SpaceX and xAI. A recent press release, bearing Musk’s signature, describes the venture as a “vertically-integrated innovation engine.” In other words, SpaceX—already juggling rockets, Starlink, and Pentagon contracts—now owns X and Grokipedia, too.
SpaceX is already behind a lot of things. Think vertically-landing rocket boosters, most of the satellites orbiting Earth, a certain microblogging app, and an AI chatbot known for… colorful outputs. The company even owns Vine, the defunct video app, which Musk says he’s reviving “in AI form.”
Will combining xAI and SpaceX create the biggest IPO of all time?
Maybe. SpaceX was valued at around $800 billion (€742 billion) not long ago. Now, with xAI in the mix, the potential IPO is attracting even more buzz.
SpaceX became crucial to space travel through a process that included many very public rocket explosions. It’s walked a tightrope, balancing serious work with the antics that come with being run by Elon Musk. That balance is about to be tested like never before.
Gwynne Shotwell: The Ultimate Musk Translator?
Gwynne Shotwell has the unenviable job of translating Elon Musk. As the Wall Street Journal put it, she’s a “Musk translator, especially for officials who depend on SpaceX but are occasionally unnerved by his activities.” Former NASA administrator Bill Nelson once called her “the steady hand” at SpaceX.
Nelson recalled calling Shotwell when Musk was buying Twitter. He asked if the purchase would affect SpaceX. “I assure you, it is not,” she said. “You have nothing to worry about.”
Fast forward to now. Imagine being Shotwell. Twitter is now X. Grok once briefly called itself “MechaHitler” and generated images that raised eyebrows. The drama has not only increased but now falls squarely under her purview as president and COO.
Space-Based AI and Sentient Suns: Is Musk Serious?
Musk wants investors to believe this merger makes sense. He’s selling a unified agenda. He claims that “within 2 to 3 years, the lowest cost way to generate AI compute will be in space.” Why? Because “in the long term, space-based AI is obviously the only way to scale.”
Training models with space compute is just step one. The ultimate goal, according to Musk, is “scaling to make a sentient sun to understand the Universe.” Obviously.
What other unrelated business ventures do big companies have?
Companies often branch out in unexpected ways. Samsung operates hotels. Red Bull publishes a nature magazine. Konami owns aerobics gyms. Sometimes these are just remnants from another era, but sometimes they reveal something about the leadership.
What is the relationship between Elon Musk and Jeffrey Epstein?
Musk recently spent days responding to public disclosure of emails where he repeatedly asked Jeffrey Epstein if he could party on his private island. He was finalizing this merger at the same time.
The Stakes Are Higher Than Ever
It’s not farfetched to think Musk’s whims—and Wall Street’s tendency to see those whims as genius—may soon control the world’s best-funded AI company. This is happening as AI becomes the load-bearing structure of the economy. The IPO could raise $50 billion (€46.4 billion). This means your 401(k) could soon be tied to a company also responsible for the lives of astronauts. The whole thing feels like a house of cards.
We’re entering a time when Wall Street’s faith in Musk must be justified. His caprice may have to become wisdom. The value of Musk himself had better not be inflated. Our collective well-being may depend on it.
If this IPO succeeds, AI can’t be a bubble. It’s a high-stakes game of chicken. The success of this venture hinges on factors as unpredictable as solar flares. Are we ready to bet the farm on a sentient sun?