SpaceX Investor Baillie Gifford Hails Pre-IPO Takeover of xAI

Elon Musk is drawing on his past playbook with SpaceX taking over xAI ahead of the orbital launch company’s initial public offering, positioning the combined business for a burst of growth, according to a SpaceX investor.

“SpaceX is in a privileged position about having not only a strong balance sheet but strong profitability and cash flow dynamics,” said Peter Singlehurst, who leads the private companies team at Baillie Gifford & Co. Musk’s xAI has big cash needs, making SpaceX a good partner, Singlehurst said Friday in a Bloomberg Television interview.