Elon Musk reportedly weighing merger of SpaceX with xAI — or Tesla

Elon Musk is reportedly working on a plan to merge two of his biggest companies: Reuters says he may merge xAI into SpaceX, while Bloomberg reports SpaceX is also considering a tie-up with Tesla. Reuters said a SpaceX–xAI combination would unite Musk’s rockets, Starlink satellites, the X social platform and the Grok chatbot, and could enable xAI data centers in space; Reuters also said it did not know the deal’s primary rationale.

xAI has already merged with the company that used to be called Twitter, the report noted. One possible motive offered in the piece is easing financing for a private AI company by tying it to a firm planning to go public: SpaceX is set for a record IPO this year. But the author notes that xAI has strong private-market backing, having raised $20 billion after initially targeting $15 billion.

The article also highlights how Musk’s companies routinely share tech, employees and investors, and that he has moved staff and resources across his firms in the past. Some investors listed as Musk backers — including Fidelity and Valor Equity Partners — are already involved with both companies, the author writes.

The Financial Times has reported Musk is trying to time the SpaceX IPO with a rare planetary alignment and his birthday, and the author speculates a merger could be aimed at boosting a prior $1.5 trillion IPO valuation — though that remains conjecture.

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