Elon Musk is considering a potential merger involving three of his companies — SpaceX, xAI, and Tesla — as talks emerge ahead of a possible SpaceX initial public offering later this year.
According to reports from Bloomberg and Reuters, discussions remain at an early stage, but could eventually result in one or more companies folding into SpaceX. Bloomberg reported that one scenario under consideration would merge SpaceX and Tesla, while another would combine SpaceX with xAI, the artificial intelligence firm that owns Musk’s social media platform X.
Reuters reported that a SpaceX-xAI merger could take place ahead of SpaceX’s planned IPO, potentially bringing together Grok, the X platform, Starlink satellites, and SpaceX’s launch operations under a single corporate structure.
Neither SpaceX nor xAI has publicly commented on the talks. However, recent regulatory filings show that two new corporate entities — K2 Merger Sub Inc. and K2 Merger Sub 2 LLC — were registered in Nevada on January 21, suggesting preparations for multiple merger outcomes.
Analysts say each scenario carries strategic advantages. A SpaceX-xAI merger could support Musk’s ambition to place data centers in space, while a SpaceX-Tesla combination could align Tesla’s energy storage business with space-based computing infrastructure.
The potential consolidation also aligns with Musk’s recent efforts to share resources across his companies. In 2025, SpaceX invested $2 billion in xAI, according to The Wall Street Journal, while Tesla disclosed earlier this week that it had also invested $2 billion in the AI startup.
xAI acquired X last year in a deal valuing xAI at $80 billion and X at $33 billion. SpaceX, founded in 2002, was recently valued at approximately $800 billion during a secondary share sale, making it the most valuable private company in the United States.
The Financial Times previously reported that Musk is targeting a June IPO for SpaceX, though Musk’s timelines have historically been subject to change.
