SpaceX and xAI — two companies led by Elon Musk — are reportedly in discussions about a possible merger ahead of a planned SpaceX IPO later this year, according to Reuters. If the deal moves forward, it could place major Musk-linked products and platforms under one umbrella, including the Grok chatbot, the X social platform, Starlink satellites, and SpaceX rockets.
Neither company has publicly confirmed the talks. However, recent filings show that two new corporate entities were created in Nevada on January 21: K2 Merger Sub Inc. and K2 Merger Sub 2 LLC — a structure often used to support merger activity.
A combination of SpaceX and xAI could also support one of Musk’s more ambitious ideas: using space-based infrastructure to power xAI’s data centers, something he has previously said he wants to pursue.
The potential merger would fit into Musk’s broader pattern of tightening connections between his companies. Last year, SpaceX reportedly agreed to invest $2 billion into xAI, according to The Wall Street Journal. More recently, Tesla disclosed that it also invested $2 billion in the AI startup.
Musk has already taken steps to consolidate his tech assets. Last year, xAI acquired X in a deal Musk said valued xAI at $80 billion and X at $33 billion. SpaceX, founded in 2002, has also continued to climb in valuation — reportedly reaching $800 billion in a recent secondary sale, making it the most valuable private company in the United States.
A separate Financial Times report recently suggested Musk is targeting June for taking SpaceX public. Still, as Musk’s track record shows, major timelines often shift — even when the ambition stays the same.
