Elon Musk Plans SpaceX-xAI Merger as Microsoft Market Value Plummets

Elon Musk is moving to merge xAI with SpaceX to create a unified entity ahead of a potential $1.5 trillion initial public offering. Microsoft lost over $400 billion in market value after reporting that quarterly capital expenditure for artificial intelligence reached $37.5 billion. Meta Platforms shares rose 10 percent following a report from Mark Zuckerberg that artificial intelligence-driven advertising tools significantly increased revenue.The proposed merger between the companies of Elon Musk would integrate rockets and satellites with chatbot technology to facilitate orbital data centers. Investors penalised Microsoft with a 10 percent stock decline as capital spending on artificial intelligence infrastructure surpassed $200 billion since the 2024 fiscal year. Meta Platforms joined Microsoft and Alphabet in a collective $500 billion investment forecast for the sector while highlighting improved advertising efficiency.Satya Nadella led Microsoft to a 60 percent rise in net income although the stock suffered its second-largest daily fall in history due to spending concerns. The consolidation of xAI and SpaceX aims to streamline financing through public markets while utilizing solar power for space-based computing operations. Tesla is also doubling its capital outlay to $20 billion as the company pivots toward humanoid robots and self-driving vehicles in the USA.