Elon Musk is reportedly exploring the idea of merging three of his companies: SpaceX, xAI, and Tesla.
Discussions are still in the early stages, but the talks could eventually lead to one company folding into SpaceX.
A potential SpaceX-xAI merger could happen before a planned SpaceX initial public offering (IPO) later this year.
Elon Musk is reportedly exploring the idea of merging three of his companies: SpaceX, xAI, and Tesla. According to reports, discussions are still in the early stages, but the talks could eventually lead to one company folding into SpaceX. There are two main possibilities being considered. One scenario is a merger between SpaceX and Tesla, as per Bloomberg. According to Reuters, another option is combining SpaceX with xAI, which already owns Musk’s social media platform, X.
SurveyReuters reports that a potential SpaceX-xAI merger could happen before a planned SpaceX initial public offering (IPO) later this year. If this occurs, it would bring together several major projects under one company, including the Grok chatbot, the X platform, Starlink satellites, and SpaceX rockets.
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Neither SpaceX nor xAI representatives have publicly commented on the potential merger. However, recent corporate filings show that two new companies were registered in Nevada on January 21, named K2 Merger Sub Inc. and K2 Merger Sub 2 LLC. This suggests Musk is keeping multiple options open.
Each merger scenario has potential benefits. A SpaceX-xAI combination could allow xAI to place its data centres in space, an idea Musk has previously discussed. On the other hand, a merger between SpaceX and Tesla could connect Tesla’s energy storage technology with the space-based data centre concept. There is also the possibility that all three companies could be integrated in some form.
Also read: Amazon in talks to invest up to $50 bn in OpenAI after cutting thousands of jobs
These moves align with Musk’s recent efforts to consolidate his businesses or at least share resources between them. Last year, SpaceX agreed to invest $2 billion in xAI, and earlier this week, Tesla also revealed a $2 billion investment in the AI startup. Meanwhile, xAI acquired the X platform last year in a deal that Musk said valued xAI at $80 billion and X at $33 billion.
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Ayushi Jain
Ayushi works as Chief Copy Editor at Digit, covering everything from breaking tech news to in-depth smartphone reviews. Prior to Digit, she was part of the editorial team at IANS. View Full Profile
