Elon Musk is reportedly considering a merger between his space exploration company, SpaceX, and either xAI or Tesla as part of strategic moves leading up to SpaceX’s anticipated initial public offering (IPO) later this year. According to Reuters, discussions between SpaceX and xAI are currently underway, with the potential merger aimed at enhancing SpaceX’s ambitious plans to launch data centers into space.
On the same day, Bloomberg provided additional insights, indicating SpaceX is also exploring a possible merger with Tesla or an alternative combination involving xAI. While the timeline and financial specifics of any merger remain uncertain, the Financial Times has suggested that SpaceX is targeting a mid-June IPO, coinciding with Musk’s birthday.
Should a merger with xAI materialize, it would align SpaceX with Grok, an AI project that has faced scrutiny and investigations from the European Union over its controversial use of sexualized deepfakes. This potential merger would further intertwine Musk’s ventures across different sectors, reflecting a pattern of consolidation among his companies.
Additionally, Tesla recently announced plans to invest approximately $2 billion in xAI, further solidifying the interconnectedness of Musk’s enterprises. In a previous transaction, Tesla had sold $430 million worth of backup batteries to xAI in 2025, demonstrating ongoing collaboration between the two companies.
At present, neither SpaceX, Tesla, nor xAI has responded to requests for comments regarding the merger discussions. As the market anticipates more details, the potential for these mergers highlights Musk’s strategy to unify his varied technological interests under a single corporate umbrella.
As developments unfold, industry watchers will be keen to see how these mergers might reshape the landscape of aerospace, artificial intelligence, and electric vehicles, particularly as SpaceX prepares for its public debut. The implications of such a merger could extend beyond corporate synergy, potentially influencing market dynamics and consumer perception in the rapidly evolving tech sector.
For those interested in the latest updates, further insights into this developing story will be provided as more information becomes available.
