Space stocks jumped in premarket trading. Sidus Space rose 16%; Destiny Tech100 rose 8%; Redwire rose 5%; EchoStar, BlackSky Technology, Rocket Lab, and Planet Labs rose 4%; AST SpaceMobile rose 3%; Starfighters Space, Firefly Aerospace, Intuitive Machines, Virgin Galactic, Momentus, and KULR Technology rose 2%.
Elon Musk said on Monday 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.
The transaction values SpaceX at $1 trillion, and xAI at $250 billion, according to a person familiar with the matter.
Investors in xAI will receive 0.1433 shares of SpaceX for every share of xAI as part of the acquisition, this person said. Some xAI executives may also opt for cash instead of SpaceX stock at $75.46 per share, the person said.
"This marks not just the next chapter, but the next book in SpaceX and xAI's mission: scaling to make a sentient sun to understand the Universe and extend the light of consciousness to the stars!" Musk said.
The purchase of xAI sets a new record for the world's largest M&A deal, a distinction held for more than 25 years when Vodafone bought Germany’s Mannesmann in a hostile takeover valued at $203 billion in 2000, according to data compiled by LSEG.
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