Musk could be consolidating his companies.
Musk could be consolidating his companies.
Elon Musk-led SpaceX may merge with another company helmed by Elon Musk. Reuters initially reported Thursday that SpaceX and xAI are “in discussions to merge” ahead of SpaceX’s IPO that’s planned for later this year. The merger would help with SpaceX’s plans to launch data centers into space, according to the publication. Later on Thursday, Bloomberg reported that SpaceX is “considering” a potential merger with Tesla or an “alternative combination” with xAI.
The specific timing and value of any potential merger are unclear. SpaceX is considering an IPO date in mid-June, the Financial Times reported this week. SpaceX, Tesla, and xAI didn’t immediately reply to a request for comment from The Verge.
If SpaceX merges with xAI, it would put the rocket company in the same house as Grok, which is under significant scrutiny and even an investigation in the EU over sexualized deepfakes.
And should SpaceX merge with either Tesla or xAI, it would be just the latest transaction between companies with Elon Musk as its CEO. Tesla said this week that it would be investing “approximately” $2 billion in xAI. Tesla also sold $430 million in backup batteries to xAI in 2025, CNBC reports. Last year, xAI bought X.
Update, January 29th: Added details from Bloomberg’s report.
