Elon Musk’s trio of companies—SpaceX, Tesla, and xAI—are reportedly exploring a potential merger, as suggested by recent reports from Bloomberg and Reuters. While discussions are still in their infancy, they might culminate in the integration of at least one of these companies into SpaceX, emphasizing a transformative shift in Musk’s tech empire.
Two primary merger scenarios are currently being considered. The first involves a merger between SpaceX and Tesla, according to insider sources cited by Bloomberg. The alternative scenario presents a collaboration between SpaceX and xAI, which is also linked to Musk’s social media platform, X.
According to Reuters, a merger between SpaceX and xAI could be strategically aligned with a planned initial public offering (IPO) for SpaceX later this year. This integration could amalgamate innovations like the Grok chatbot, the X platform, Starlink satellites, and SpaceX rockets under a unified entity.
While representatives from both companies remain tight-lipped on the subject, recent filings indicate the formation of two new corporate entities in Nevada—K2 Merger Sub Inc. and K2 Merger Sub 2 LLC—hinting that Musk is maintaining a flexible approach to these developments.
Several advantages could arise from either merger scenario. The collaboration between SpaceX and xAI might facilitate the deployment of xAI’s data centers in space, a futuristic prospect Musk has publicly endorsed. Meanwhile, merging SpaceX with Tesla could harmonize the electric vehicle manufacturer’s energy storage capabilities with space-based data center ambitions.
These discussions echo Musk’s ongoing efforts to consolidate resources across his companies. Last year, SpaceX committed $2 billion to xAI, and just this week, Tesla unveiled a similar investment of $2 billion in the AI startup.
In the past, xAI acquired X for what Musk stated valued the former at $80 billion and the latter at $33 billion. SpaceX, founded in 2002, recently launched a secondary sale that reportedly valued it at $800 billion, positioning it as the most valuable private company in the United States.
A Financial Times report has also indicated that Musk aims to take SpaceX public by June, although past timelines set by Musk have frequently proven optimistic.
This article was initially published at 10:30 a.m. PT and has been updated with new information regarding Tesla.
