In response to Xprize executive chairman Peter Diamandis' TuesdayX postthat Elon Musk must control the best hardware instead of running the best AI model, while adding that Nvidia is the most valuable company and the hyperscale play works, the richest person on the planet said his company's AI will be 'great.' Elon Musk assured he won't ever give up on trying to make xAI the best.
Musk also urged Diamandis and critics to wait three years from now to see where 'things stand,' while highlighting that SpaceX is only three years old. 'That's half the age of Anthropic and quarter the age of OpenAI,' he wrote on X.
In a separate response on the social media platform he owns, Musk added: 'SpaceX had achieved nothing of note after 3 years and was written off as dead after 6 years with 3 consecutive launch failures... But you may have noticed that things are different now.'
What you say is true, but nonetheless our AI will be great. Whether it is the best remains to be seen, but I will never give up. Never.Space(XAI) is only 3 years old. That’s half the age of Anthropic and quarter the age of OpenAI.Let’s see where things stand 3 years from…
Musk's response comes in tandem with reports from multiple media outlets, includingCNBC, that Musk reportedly seeks to merge Tesla with SpaceX, which was combined with xAI earlier this year.
SpaceX is set for its initial public offering on 12th June and is aiming for a market valuation of $1.75 trillion to $2 trillion. Meanwhile, Tesla's market cap is currently around $1.6 trillion. Sources told CNBC that both the companies have shared resources, and Musk has informed colleagues about merging them.
A Tesla employee told a media outlet that workers at the company have anticipated a similar transaction to eventually occur, while another worker said that shared challenges linked to energy and compute limitations result in frequent collaborations.
'Tesla has to run powerful AI systems inside a moving vehicle with tight limits on power, cooling, latency, reliability and cost,' said Tomasz Tunguz, venture capitalist at Theory Ventures. 'SpaceX has to think about compute in orbit, where radiation, thermal cycling, launch mass, power generation and heat rejection all become existential design constraints.'
Tunguz added that a potential merger has captured the attention of Silicon Valley, but a deal of that scale would be highly complex.
SpaceX has tied Musk's compensation rewards to achieving a $7.5 trillion market cap and colonising Mars with at least 1 million inhabitants. Elsewhere, Tesla shareholders approved a pay plan in 2025 comprising 12 tranches, with each payout linked with market cap gains and operational milestones.
Source: International Business Times UK
