Elon Musk’s SpaceX and xAI in talks to merge, report says | TechCrunch

In Brief

SpaceX and xAI, both companies led by Elon Musk, could merge ahead of a planned SpaceX IPO this year, according to a report from Reuters. This would bring products like the Grok chatbot, X platform, Starlink satellites, and SpaceX rockets together under one corporation.

Company representatives have not discussed this possibility in public. However, recent filings show that two new corporate entities were established in Nevada on January 21, which are called K2 Merger Sub Inc. and K2 Merger Sub 2 LLC.

Combining the two companies could allow xAI to put its data centers in space, something Musk has said he wants.

This move would also fall in line with Musk’s recent strategies to consolidate his companies. Last year, SpaceX agreed to invest $2 billion in xAI, according to The Wall Street Journal, and earlier this week, Tesla (also led by Musk) revealed it, too, invested $2 billion in the AI startup.

Last year, xAI bought X in a deal that Musk said valued xAI at $80 billion and X at $33 billion. SpaceX, which has been around since 2002, reportedly launched a secondary sale that valued it at $800 billion, making it the most valuable private company in the U.S.

A recent Financial Times report indicated that Musk wants to take SpaceX public in June. Then again, Musk’s grand plans rarely happen on time.

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