Elon Musk-led SpaceX is reportedly engaged in discussions regarding a merger with either Tesla or xAI as the aerospace company finalizes plans for a forthcoming initial public offering, according to reports published Thursday.
Reuters initially indicated that merger talks were underway between SpaceX and xAI, suggesting the consolidation could specifically aid SpaceX’s objectives to deploy data centers into orbital space. This move underscores a push to integrate advanced computing infrastructure directly into extraterrestrial operations.
Bloomberg later corroborated the potential consolidation, specifying that while xAI remains an option, SpaceX is also weighing a combination with Tesla. The precise valuation or definitive timeline for any transaction remains unconfirmed by the involved parties.
This potential alignment places Grok, xAI's large language model currently under regulatory scrutiny in the EU, within the same corporate structure as the rocket company. SpaceX is reportedly targeting a mid-June timeframe for its IPO submission, as detailed in a recent Financial Times report this week.
This is not the first instance of financial integration between Musk’s enterprises; Tesla recently committed to investing approximately $2 billion into xAI for computing resources. Furthermore, CNBC noted that Tesla previously supplied xAI with $430 million worth of backup energy storage solutions last year.
Should a merger proceed, it represents another significant organizational restructuring within Musk’s portfolio, linking his automotive, social media, AI, and aerospace endeavors more closely. SpaceX, Tesla, and xAI did not offer immediate comment when contacted by The Verge regarding the reported merger considerations.
Analysts view these maneuvers as efforts to streamline resources and potentially create a more vertically integrated technology ecosystem capable of supporting Musk’s long-term vision for artificial intelligence deployment across various sectors.
