Elon Musk’s SpaceX is reportedly considering a merger with another of Musk’s ventures. Sources revealed to Reuters on Thursday that discussions are underway between SpaceX and xAI about a potential merger, anticipated before SpaceX’s initial public offering (IPO) slated for later this year. This strategic move could advance SpaceX’s ambitious goal of deploying data centers in space. Meanwhile, Bloomberg reported that SpaceX is also contemplating a merger with Tesla or an alternative arrangement with xAI.
The specifics regarding the timing and financial aspects of such a merger remain uncertain. According to the Financial Times, SpaceX is eyeing mid-June for its IPO. When approached for comments, representatives for SpaceX, Tesla, and xAI did not immediately respond to inquiries from The Verge.
If SpaceX proceeds with a merger involving Tesla or xAI, it would mark another significant transaction between companies under Musk’s leadership. Tesla recently announced plans to invest approximately $2 billion in xAI. Additionally, CNBC reported that Tesla will supply $430 million worth of backup batteries to xAI in 2025. Last year, xAI made headlines with its acquisition of X.
Update, January 29th: Additional insights included from Bloomberg’s report.
