SpaceX acquires xAI in a deal projected to be worth $1.25 trillion

• SpaceX's acquisition of xAI is seen as a long-term strategic move, leveraging space for efficient data centers with 24/7 solar power and better cooling.
• xAI is projected to achieve significant revenue growth by 2026-2027, with the merger helping reduce its current high burn rate.
• SpaceX is expected to IPO before OpenAI, as institutional money rotates from 'Mag 7' stocks into new AI-centric companies like Anthropic and Databricks.

The discussion focuses on SpaceX's acquisition of xAI, viewed as a strategic long-term move to develop efficient space-based data centers, driving significant revenue growth for xAI by 2026-2027. The analyst also anticipates SpaceX's IPO before OpenAI's, highlighting a broader market rotation into new AI-centric companies.