25 trillion. The combined entity is expected to pursue an IPO later this year, which could raise as much as $50 billion. This mega-deal does not include Tesla, which invested $2 billion in xAI last month.
As a result, Tesla shareholders now indirectly own a small stake in SpaceX through their investment in xAI. The acquisition has raised significant questions about Musk's priorities and the future of his companies. With this deal, Musk is effectively consolidating his empire into two main entities: SpaceX-xAI and Tesla.
But will his attention and resources be focused on the more ambitious entity, or will he continue to prioritize the smaller but still profitable company? The acquisition also raises concerns about conflict of interest and the potential for Musk to use Tesla's funds to prop up his private companies. ' With Tesla struggling with declining vehicle sales, this move may not be the vote of confidence investors were hoping for.
The deal also creates a clearer picture of Musk's empire and raises questions about the future of his AI ambitions. Will space-based AI become a reality, or is it just another example of Musk's futurism? Only time will tell.