Three companies led by Elon Musk SpaceX, Tesla and artificial intelligence firm xAI are reportedly exploring a possible merger, according to reports by Bloomberg and Reuters. The discussions are said to be at an early stage, but they point to Musk’s growing effort to bring his businesses closer together.
Sources cited by the reports say the talks could lead to one or more of the companies being folded into SpaceX, especially as the rocket maker prepares for a possible public listing later this year.
Two merger options under discussion
According to Bloomberg, one scenario being considered involves a merger between SpaceX and Tesla. Another option, reported by Reuters, suggests SpaceX could merge with xAI, the company behind the Grok chatbot and owner of social media platform X.
Reuters added that a SpaceX-xAI merger could happen before SpaceX’s planned initial public offering. Such a move would place SpaceX rockets, Starlink satellites, X, and Grok under a single corporate structure.
Neither SpaceX nor xAI has commented publicly on the reports.
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New filings hint at preparation
While the companies have not confirmed the talks, recent regulatory filings have raised questions. Two new entities - K2 Merger Sub Inc. and K2 Merger Sub 2 LLC - were registered in Nevada on January 21. According to corporate records, such entities are often created to support merger activity.
These filings suggest that Musk may be keeping multiple options open as he looks at restructuring his business empire.
Why a merger could make sense
Analysts say a SpaceX and xAI combination could support Musk’s stated interest in placing data centres in space using Starlink and SpaceX infrastructure. A SpaceX-Tesla merger could also connect Tesla’s energy storage business with future space-based computing projects.
The idea of closer integration is not new. According to The Wall Street Journal, SpaceX invested $2 billion in xAI last year. Tesla also disclosed this week that it has invested $2 billion in the AI firm.
In 2024, xAI acquired X in a deal that Musk said valued xAI at $80 billion and X at $33 billion. SpaceX, founded in 2002, was valued at around $800 billion in a recent secondary share sale, making it the most valuable private company in the United States, according to reports.
Musk is considering taking SpaceX public
A report by the Financial Times said Musk is considering taking SpaceX public as early as June. However, timelines around Musk-led projects have often shifted in the past.
For now, the merger discussions remain unconfirmed. But if they move forward, the deal could reshape how Musk’s companies operate - bringing rockets, electric cars, satellites, social media and AI under a single strategic vision.

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