Elon Musk could be preparing to combine some of his major companies, as new reports say that SpaceX is exploring a merger with either Tesla or xAI ahead of a possible public stock offering later this year. According to a report from Reuters, SpaceX and xAI are in active discussions about merging. The report says this move could support SpaceX’s longer-term goal of building and operating data centers in space.
A separate report from Bloomberg says SpaceX is also considering a merger with Tesla or another form of partnership with xAI. The structure, value, and timing of any deal have not been confirmed. SpaceX is said to be targeting a mid-June IPO window, based on recent reporting from the Financial Times. None of the companies responded to media requests for comment.
A merger with xAI would bring SpaceX closer to the AI chatbot Grok, a product developed by xAI that is currently facing regulatory attention in the European Union over concerns tied to sexualized deepfake content. Closer integration could raise further questions among regulators and investors about oversight and risk across Musk’s businesses.
The possible merger would also be the latest in a series of financial ties between Musk-led companies. Tesla recently announced plans to invest about $2 billion into xAI. In 2025, Tesla also sold roughly $430 million worth of backup battery systems to xAI, according to CNBC. Last year, xAI acquired the social platform X, expanding its access to user data and distribution.
Together, these moves suggest Musk may be aligning his aerospace, electric vehicle, and artificial intelligence efforts more closely, possibly to strengthen funding, technology sharing, and infrastructure ahead of SpaceX entering the public market.
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