Investing.com — Elon Musk’s SpaceX and xAI are discussing a potential merger before a major initial public offering planned for later this year, according to a Reuters report on Thursday.
The combination would unite Musk’s rocket business, Starlink satellite network, X social media platform, and Grok AI chatbot under a single corporate structure,
The merger would also strengthen SpaceX’s efforts to launch orbital data centers as Musk competes in the intensifying artificial intelligence sector against competitors like Google, Meta and OpenAI.
Under the proposed arrangement, xAI shares would be exchanged for SpaceX shares, with two Nevada entities established to facilitate the transaction. Some xAI executives might receive the option to take cash instead of SpaceX stock as part of the deal.
No final agreement has been signed, with the timing and structure of the transaction still subject to change.
SpaceX currently holds the title of the world’s most valuable private company, with a recent valuation of $800 billion from an insider share sale. xAI was valued at $230 billion in November, according to the Wall Street Journal.
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