Elon Musk’s SpaceX buys xAI in stunning deal valued at $1.25 trillion ahead of looming IPO

Elon Musk’s rocket company SpaceX has acquired xAI, the artificial intelligence firm founded by Musk three years ago, in a massive, and unconventional, deal that combines the two privately held firms into a company with an astounding $1.25 trillion reported valuation and plans for a historic IPO this year.

Musk, who is the CEO of both companies as well as publicly traded electric vehicle and robotics company Tesla, described the combination as one that will “form the most ambitious,...