Elon Musk just pulled off the biggest merger in corporate history but is the $1.25 trillion SpaceX–xAI deal a stroke of visionary genius, or a financial sleight of hand?
In this episode of Market Maker, Anthony and Piers unpack what’s really behind the numbers. Is this bold vertical integration or just a clever way to funnel cash into a billion-dollar-a-month AI burn machine? They dig into Starlink’s role as the cash engine, xAI’s financial reality, and why Musk is using a rare “triangular merger” to shield liabilities.
They also break down Musk’s plan for space-based data centers and whether the science (and physics) actually adds up, plus how this all ties into the bigger Muskonomy: Grok, Optimus, robo-taxis, and orbital dominance.
You'll also hear how Morgan Stanley, Goldman Sachs, J.P. Morgan, and BofA are circling the biggest IPO in history and what it means for markets, investors, and tech.
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(00:00) SpaceX Acquires xAI
(01:57) Biggest Deal Ever?
(03:18) Musk’s $1.25T Valuation Math
(06:42) What SpaceX Actually Does
(07:24) Starlink = The Cash Cow
(11:35) xAI = The Cash Drain
(12:48) AI Arms Race Spending
(16:14) Why This Merger Makes Sense
(18:07) Muskonomy: The Bigger Vision
(20:28) Google, Amazon & Space Rivals
(20:59) The Triangular Merger Trick
(23:51) Starlink, xAI & SpaceX Strategy
(24:59) Space Data Centers Explained
(28:27) Who Owns Space?
(29:43) Governments vs Tech Giants
(33:05) The Science Problem in Space
(38:56) The Underwater Data Center Attempt
(41:34) Which Banks Are Involved
(48:09) Final Thoughts for the Grad Bankers