Musk Just Merged SpaceX With His AI Startup

Today we are going to see, A $200M Deal to rethink enterprise AI. How exactly did Snowflake and OpenAI join forces and what does it bring for the people? Also SpaceX Absorbs xAI in a $1.25T move. The Musk universe tightens because Elon Musk just merged SpaceX and xAI. Now Rockets, Chatbots is a One Giant Bet.

In today’s post:

• SpaceX Just Swallowed xAI

• Marvell’s $1B Bet on the Future of AI Connectivity

• Snowflake’s $200M Bet: AI Agents for the Enterprise

What’s Trending Today

AQUISITION

Elon Musk just merged rockets with artificial intelligence

SpaceX, Elon Musk’s most valuable private company, has officially acquired xAI, his fledgling A.I. startup. The result? A $1.25 trillion behemoth that blends space tech, social media, and chatbots under one roof.

Here’s everything you need to know:

• SpaceX absorbed xAI in a move that strengthens Musk’s empire and blurs lines between his companies.

• The combined entity now includes rockets, Starlink internet, Grok (an A.I. chatbot), and the social platform X.

• Musk says this is about building vertically integrated innovation with data centers... in space.

• The deal values SpaceX at $1T and xAI at $250B, pushing the combined company past $1.25T.

• An IPO is tentatively targeted for June 2026, aiming to raise $50B though details are still fluid.

• Critics see the merger as a bailout for xAI, which is burning cash chasing OpenAI and Anthropic.

• Investors are split: some call it visionary, others worry it’s a risky mash-up with unclear synergies.

This isn’t just about cost-saving or efficiency. It’s Musk doubling down on his long game, integrating his companies into one system that serves his Mars vision. But whether the tech, timing, and trust all align is still a massive question mark. Merging an A.I. startup with a space contractor is either genius… or hubris. Probably both.

STRATEGY

Marvell just acquired Celestial AI

Marvell Technology has completed its acquisition of Celestial AI, betting big on optical interconnects as the next frontier in AI infrastructure.

Here’s everything you need to know:

• Celestial AI’s Photonic Fabric™ tech helps move data faster with less energy , critical for AI-scale systems.

• Marvell paid $1 billion in cash and issued equity, cutting its cash reserves and adding 27M new shares.

• Initial revenue from the deal is expected in fiscal 2028, hitting $500M annually by Q4, then doubling in 2029.

• The acquisition adds $50M in annual non-GAAP operating costs and reduces Marvell’s expected interest income.

• The Celestial team now joins Marvell’s Data Center Group, expanding its end-to-end interconnect portfolio.

• Marvell is now positioned to lead in scale-up AI architectures, a rapidly growing market few players are ready for.

• CEO Matt Murphy called the deal a major step in building “the most comprehensive data infrastructure platforms.”

Marvell’s move isn’t flashy, it’s foundational. Optical interconnects are invisible to most people but essential to making future AI systems work. If the market for scale-up connectivity grows as expected, this could be one of the most important (and overlooked) semiconductor deals of the decade.

PARTNERSHIP

Snowflake and OpenAI just teamed up

Snowflake has signed a $200 million partnership with OpenAI to embed its models — including GPT-5.2 directly into the enterprise data stack.

Here’s everything you need to know:

• The deal brings OpenAI’s models natively into Snowflake’s platform, available to all 12,600+ customers.

• Global brands like Canva and WHOOP are already using the integration to power AI agents and insights.

• The models are embedded within Cortex AI, enabling natural language querying, reasoning, and decisions on enterprise data.

• This is about agentic AI systems that act autonomously on trusted data, not just analyze it.

• Snowflake’s secure architecture and uptime guarantee (99.99%) make this a safe landing zone for critical workflows.

• OpenAI benefits too: it now has first-party access to a massive base of enterprise data via a trusted cloud layer.

• Joint innovation efforts are already underway using OpenAI’s AgentKit, SDKs, and APIs to build customized AI agents.

This isn’t just another AI integration. It’s the infrastructure shift that brings advanced models to where enterprise data actually lives. If Snowflake nails the developer experience and OpenAI keeps innovating on the modeling side, we’re about to see AI move from pilot projects to core operations across every major industry.

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