Elon Musk’s companies SpaceX, xAI, and Tesla are in early-stage talks about potential mergers, according to reports from Bloomberg and Reuters.
The discussions could lead to at least one company merging into SpaceX. Bloomberg, citing unnamed insiders, reports talks of a SpaceX-Tesla merger. Reuters describes a potential SpaceX-xAI merger that could occur before SpaceX’s planned initial public offering this year.
Such a SpaceX-xAI deal would combine the Grok chatbot, X social media platform, Starlink satellites, and SpaceX rockets under one corporation. Company representatives from SpaceX and xAI have not commented publicly on the matter.
On January 21, two new entities were incorporated in Nevada: K2 Merger Sub Inc. and K2 Merger Sub 2 LLC. The filings indicate merger options remain open.
Last year, SpaceX invested $2 billion in xAI, according to The Wall Street Journal. Earlier this week, Tesla disclosed a separate $2 billion investment in the AI startup. Also last year, xAI acquired Musk’s social media platform X in a deal that valued xAI at $80 billion and X at $33 billion.
SpaceX, founded in 2002, recently conducted a secondary share sale that valued the company at $800 billion. This positions SpaceX as the most valuable private company in the United States.
A SpaceX-xAI merger could enable xAI to deploy data centers in space, an idea Musk has mentioned. A SpaceX-Tesla merger could integrate Tesla’s energy-storage business with the concept of space-based data centers.
These merger possibilities align with Musk’s recent statements and actions to consolidate or share resources among his companies.
