Musk Prepares Major Merger as SpaceX and xAI Hold Talks Ahead of IPO
Business
Elon Musk is in talks to merge SpaceX with his artificial intelligence startup xAI ahead of the space company’s planned initial public offering in 2026, according to Reuters. If completed, the deal would bring rockets, the Starlink satellite network, social platform X and the Grok AI chatbot under one corporate umbrella.
Sources say xAI shares could be exchanged for SpaceX equity, with some executives offered cash instead. The agreement has not yet been finalized, and its structure may change.
Two new entities registered in Nevada in January are believed to be part of the deal’s preparation. SpaceX is currently valued at around $800 billion and is expected to surpass a $1 trillion valuation after its IPO.
xAI is building a supercomputer called Colossus in Memphis to train AI models. Musk has said that, within a few years, data centers powered by solar energy could be placed in orbit, significantly reducing computing costs.
The potential merger could accelerate SpaceX’s plans to deploy AI infrastructure in space and strengthen Musk’s position in the global competition with Google, Meta and OpenAI.
Two new entities registered in Nevada in January are believed to be part of the deal’s preparation. SpaceX is currently valued at around $800 billion and is expected to surpass a $1 trillion valuation after its IPO.
xAI is building a supercomputer called Colossus in Memphis to train AI models. Musk has said that, within a few years, data centers powered by solar energy could be placed in orbit, significantly reducing computing costs.
The potential merger could accelerate SpaceX’s plans to deploy AI infrastructure in space and strengthen Musk’s position in the global competition with Google, Meta and OpenAI.
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