SpaceX and xAI Bag Massive Billion-Dollar Contracts, Bolstering Their Valuations
In a remarkable turn of events, two of Elon Musk's ventures, SpaceX and xAI, have seen significant valuation increases, as reported by various financial publications.
SpaceX, Musk's largest private company in the U.S., is planning to sell shares at $135 each in December, aiming for a valuation of over $250 billion. This represents a substantial increase from its earlier this year valuation of $210 billion.
Meanwhile, xAI, an AI start-up headed by Musk, has seen its value nearly double in a recent funding round. Secured in discussions that began only last month, the funding values xAI at $45 billion. This is a significant jump from its worth just a few months ago. The funds raised will be used to further the development of xAI's projects, which include building one of the world's largest supercomputers, called Colossus, in Memphis, and the development of an AI tool named Grok, competing with systems like ChatGPT.
The strong support from investors for Musk's ventures has been a recurring theme, with the Financial Times reporting that this continued backing has led to the massive valuation jumps of his companies.
Interestingly, xAI is also expected to undergo another funding round early next year, potentially valuing the company at $75 billion. All the shares for the current funding round were quickly snapped up by existing investors.
As for SpaceX, the funds raised will be used to further its mission of reaching Mars. This mission is being funded by the growth of its Starlink satellite internet constellation.
It's worth noting that Musk is seen as a close adviser to former President Donald Trump, which could potentially benefit SpaceX in securing government deals. However, the name of the board member leading the Department of Government Efficiency (DOGE) together with Musk is not explicitly mentioned in the search results. Only Elon Musk is identified as a key figure in the leadership of the department created under former President Trump.
In a separate development, Trump's election win on November 5 has led to a nearly 30% surge in Tesla's stock price. Musk, who is also the CEO of Tesla, has been a vocal supporter of Trump in the past.
In summary, the valuations of SpaceX and xAI have seen a dramatic increase, reflecting the continued investor interest in Elon Musk's ventures. As these companies continue to grow and innovate, it will be interesting to see what the future holds for these groundbreaking projects.
