Elon Musk announces SpaceX’s acquisition of AI startup xAI in a deal worth $250 billion. Investors in xAI will receive 0.1433 shares of SpaceX for every share of xAI. The merged company is expected to price shares at $527 each, with a potential $1.5 trillion valuation in a public offering.

This deal breaks the record for the world’s largest M&A, surpassing Vodafone’s acquisition of Mannesmann in 2000. The transaction values SpaceX at $1 trillion and xAI at $250 billion. The merger consolidates Musk’s business empire under a mutually reinforcing ecosystem known as the “Muskonomy.”

Regulators and investors may scrutinize the agreement due to potential conflicts of interest and governance concerns. SpaceX holds federal contracts with NASA, the Department of Defense, and intelligence agencies, raising national security risks. Musk’s history of merging ventures and overlapping leadership roles could also draw regulatory attention.

Read more at Yahoo Finance: SpaceX acquires xAI in record-setting deal as Musk looks to unify AI and space ambitions