New Delhi, Feb. 4 -- Elon Musk has announced that he is combining SpaceX and xAI, his cash-burning artificial intelligence venture, in a deal that values the enlarged entity at $1.25 trillion.

The deal, which comes amid his push to prioritise AI and space exploration, signals a change within the corporate empire of Elon Musk.

Musk said SpaceX was acquiring xAI to develop data centres in space, which he says is an escape from the constraints on earth.

The deal values SpaceX at $1 trillion and xAI at $250 billion, according to Bloomberg and Reuters who cited people familiar with the knowledge of the matter.

The SpaceX-xAI merger, announced on Monday, will change how Elon Musk's enormous wealth takes shape.

Till now Tesla has been the s...