SpaceX merges with xAI and prepares for a massive stock market debut

Elon Musk's space company, SpaceX, has merged with his artificial intelligence company, xAI. The combined company is valued at $1.25 trillion, and SpaceX is reportedly preparing to file confidentially for an initial public offering (IPO) as soon as March, which could seek a valuation of over $1.75 trillion.

Several executives and co-founders from xAI have left the company following the merger. The deal has attracted significant investment, including a $3 billion investment in xAI from Saudi Arabia's Public Investment Fund prior to the acquisition. The U.S. National Labor Relations Board has reportedly ended its oversight of SpaceX.

Separately, Musk's social media platform X is facing a large-scale privacy investigation from Europe's data protection authority. Ireland's data watchdog has also opened a probe into xAI's Grok chatbot over reports it can produce sexualized images. French President Emmanuel Macron has criticized Musk, calling him 'over-subsidised.'