Elon Musk's SpaceX has merged with his artificial intelligence startup xAI, creating a combined entity valued at $1.25 trillion, as reported by multiple sources including Business Recorder and The Frontier Post. This merger is described as a 'record-setting deal' that aims to unify Musk's ambitions in both AI and space exploration. The merger is expected to bolster SpaceX's data-center capabilities, as Musk competes with tech giants like Google, Meta, and OpenAI. According to The Frontier Post, the deal values SpaceX at $1 trillion and xAI at $250 billion. Musk envisions the new entity as 'the most ambitious, vertically-integrated innovation engine on (and off) Earth,' combining AI, rockets, and space-based internet services.