Three of Elon Musk’s companies — SpaceX, xAI and Tesla — are in play for a potential merger. While the talks appear to be at an early stage, according to reports from Bloomberg and Reuters, they could eventually lead to the folding of at least one company into SpaceX.
Two scenarios are fragmented. In one, SpaceX and Tesla will merge, according to Bloombergciting unnamed insiders. In another, SpaceX and aXI (which already owns Musk’s social networking platform X) will combine.
According to Reuters reporta merger between SpaceX and xAI could happen before a planned SpaceX IPO this year. This will bring products such as Grok chatbot, X platform, Starlink satellites and SpaceX rockets together under one company.
Company representatives from SpaceX and xAI have not publicly discussed this possibility. However, recent filings show that two new corporate entities were formed in Nevada on January 21, called K2 Merger Sub Inc. and K2 Merger Sub 2 LLC. This suggests that Musk is keeping all options open.
There are positives in every scenario. Combining the companies SpaceX and xAI could allow xAI to put its data centers in space, which Musk has said he wants. A SpaceX-Tesla tie-up could also align the EV maker’s energy storage business with the data center concept in space.
Both options — as well as a combination of all three companies — are consistent with Musk’s comments and recent moves to consolidate or, at least, share resources with each other. Last year, SpaceX agreed to invest $2 billion in xAI, according to The Wall Street Journaland earlier this week, Tesla (also led by Musk) revealed it, too, has 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 US
Techcrunch event
Boston, MA
|
June 23, 2026
A recent Financial Times report stated that Musk wants to take over SpaceX public in June. Again, Musk’s big plans they rarely happen on time.
This article was originally published at 10:30 am. PT. It has since been updated with new information about Tesla.
