Elon Musk is reportedly considering a merger between his aerospace company, SpaceX, and either xAI or Tesla. According to sources including Reuters, discussions are underway as SpaceX prepares for an initial public offering (IPO) anticipated later this year. The potential merger could facilitate SpaceX’s strategy to launch data centers into space, enhancing its technological capabilities.
On the same day, Bloomberg indicated that SpaceX is weighing its options, including a possible merger with Tesla or an alternative partnership with xAI. The exact timing and valuation for any merger remain uncertain. Notably, the Financial Times reported that SpaceX is eyeing a mid-June 2025 IPO, coinciding with significant events in Musk’s personal calendar.
SpaceX, Tesla, and xAI have not commented on the merger talks as of yet. Should SpaceX align with xAI, it would bring the company under the same umbrella as Grok, which is currently facing scrutiny and an investigation in the European Union for concerns related to deepfake technology.
This merger would not be Musk’s first consolidation of interests. Recently, Tesla announced plans to invest approximately $2 billion in xAI. Additionally, in 2025, Tesla sold $430 million worth of backup batteries to xAI, illustrating a pattern of financial interdependence between Musk’s ventures.
As the discussions continue, the business community is closely watching how this potential merger could reshape the landscape of aerospace, artificial intelligence, and automotive industries. Musk’s vision of integrating his companies may pave the way for innovative projects that leverage synergies across these sectors.
In summary, as talks of a merger unfold, the implications for SpaceX’s IPO and the future of Musk’s companies remain significant. The outcome of these discussions could redefine the operational dynamics of the aerospace and technology industries, setting a precedent for future collaborations.
