Western Digital expands buyback by $4 billion as AI drives chip demand

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Data storage maker Western Digital said its board has approved an additional $4 billion for share repurchases, citing strong demand for memory chips used in artificial intelligence servers. The announcement pushed shares up about 5% in premarket trading, extending a rally that has already lifted the stock sharply over the past year.

The company said the new authorization adds to an existing buyback program, under which roughly $484 million remained available as of earlier this week. Western Digital shares have surged on expectations that AI-driven data center investment will continue to boost demand for storage products, including hard drives and flash memory.

A global shortage of memory chips has intensified competition for supply, particularly from AI developers and consumer electronics makers. Limited manufacturing capacity and longer lead times have driven prices higher, benefiting suppliers positioned to serve the fast-growing AI server market.

Western Digital recently forecast fiscal third-quarter revenue and profit above Wall Street expectations, pointing to strong sales of storage solutions for AI workloads. Management said the buyback expansion reflects confidence in cash generation and long-term demand trends tied to artificial intelligence infrastructure.

SpaceX acquires xAI in record-setting deal as Musk unifies AI and space ambitions

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SpaceX has acquired xAI in a record-setting transaction, consolidating Elon Musk’s artificial intelligence and space businesses into a single platform. The deal, first reported by Reuters, values SpaceX at about $1 trillion and xAI at roughly $250 billion, according to people familiar with the matter, making it the largest merger and acquisition transaction on record.

Under the terms, xAI investors will receive 0.1433 SpaceX shares for each xAI share, with some executives able to opt for cash at $75.46 per share. The combined entity is expected to price shares near $527. The tie-up brings together SpaceX’s launch and satellite capabilities, including Starlink, with xAI’s Grok chatbot and AI development, potentially strengthening plans for data centers and AI services delivered from orbit.

The move further integrates Musk’s businesses as he competes with rivals such as Alphabet, Meta, Amazon, and OpenAI. Analysts say the deal could enhance SpaceX’s narrative ahead of a potential public offering later this year, while also raising governance and regulatory questions given SpaceX’s extensive U.S. government contracts.

Tesla invests $2 billion in xAI, confirms Cybercab production this year

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Tesla said it will invest $2 billion in xAI, the artificial intelligence company founded by its chief executive Elon Musk, while reaffirming that production of its Cybercab robotaxi remains on track to begin this year. The move underscores Tesla’s strategic shift from a traditional electric vehicle maker toward an AI- and autonomy-focused business model.

The investment supports Tesla’s push into self-driving technology and robotics, areas central to its long-term valuation. Management said factory investments tied to Cybercabs, humanoid robots, Semi trucks, and the Roadster will drive capital expenditures above $20 billion this year, more than double prior levels. Shares rose after the announcement but pared gains as investors weighed the scale of spending.

Tesla said it will stop selling the Model S and Model X, reallocating factory space to robotics production. While its core EV business remains under pressure from competition and pricing incentives, the company highlighted progress in margins and strong growth in its energy generation and storage segment.

Musk reiterated expectations for broader autonomous deployment, though regulatory hurdles remain for the Cybercab, which is designed without a steering wheel or pedals. Investors are watching rollout milestones closely as Tesla seeks to convert long-promised autonomy into tangible revenue.