Mega IPOs in focus after Musk's SpaceX acquires xAI

Reuters: Elon Musk's SpaceX has acquired his artificial intelligence startup xAI in a deal that unifies the billionaire's AI and space ambitions by combining the rocket-and-satellite company with the maker of the Grok chatbot.

 

The deal, which reportedly values SpaceX at $1 trillion and xAI at $250 billion, comes as the rocket company plans a blockbuster initial public offering this year that could take place as soon as June, Reuters has reported.

 

If xAI raises more than $25.6 billion, it would eclipse the world's largest IPO to date, which was oil major Saudi Aramco's (2223.SE), opens new tab listing in 2019.

 

Analysts expect the potential landmark listing to reinvigorate the IPO market and push more high-profile private startups such as ChatGPT maker OpenAI and rival Anthropic to the public markets, ending a years-long downturn.