（Singapore, 30.01.2026）Elon Musk is once again blurring the lines between space exploration, artificial intelligence and electric vehicles. SpaceX is exploring possible mergers with either Tesla or artificial intelligence startup xAI, raising the prospect of a major consolidation within Musk’s growing business empire, Bloomberg News reported, citing people familiar with the matter.
The discussions come as SpaceX prepares for what could become the largest initial public offering in history. While no final decisions have been made and all options remain open, the talks highlight Musk’s effort to align his companies more closely around a long-term vision that links rockets, satellites, AI systems, robots and clean energy.
Musk, who leads SpaceX, Tesla and xAI, did not respond to requests for comments. Representatives from the companies also declined to comment.
Merger talks ahead of IPO
SpaceX is widely expected to go public later this year, with reports suggesting a valuation that could exceed US$1 trillion. The company may target a June listing and seek to raise as much as US$50 billion, a transaction that would dwarf previous IPO records.
As preparations advance, SpaceX is assessing whether merging with one of Musk’s other companies would strengthen its appeal to public investors or introduce added complexity. Two legal entities with “merger sub” in their names were recently registered in Nevada, listing SpaceX Chief Financial Officer Bret Johnsen as an officer, indicating early groundwork for a possible deal.
One scenario under discussion involves combining SpaceX with xAI ahead of the IPO. Under that structure, xAI shares would likely be exchanged for SpaceX stock, though some xAI executives may have the option to receive cash, Reuters reported, citing a person familiar with the matter. Such a merger would place rockets, Starlink satellites, the X social media platform and the Grok chatbot under a single corporate roof.
A separate option being explored is a merger with Tesla. That idea has gained traction among some investors who believe bringing Musk’s companies closer together could reduce management strain and unlock operational synergies.
The market reaction suggests investors are paying close attention. Tesla shares rose sharply in after-hours trading following reports of the talks, despite the stock decline earlier in the day.
Any transaction could attract strong interest from global infrastructure funds and Middle Eastern sovereign wealth investors. However, sources caution that a merger could also complicate the IPO process, particularly given the scale of financing that might be required.
AI in space and Musk’s long-term vision
At the heart of the merger discussions is Musk’s belief that the future of artificial intelligence computing lies beyond Earth. He has repeatedly argued that space-based data centers, powered by solar energy and cooled naturally in orbit, could dramatically reduce the cost of running and training large AI models.
A merger between SpaceX and xAI could accelerate that plan. SpaceX already has unmatched experience launching and operating large satellite constellations through Starlink, while xAI is rapidly expanding its AI capabilities, including the Grok chatbot and a massive AI training supercomputer in the United States.
Tesla, meanwhile, could play a key supporting role. Its expertise in battery storage, solar energy and advanced manufacturing could help power orbital data centers and support future off-world infrastructure. Musk has also floated the idea of using SpaceX’s Starship rockets to transport Tesla’s Optimus humanoid robots to the Moon and eventually to Mars.
Beyond commercial uses, analysts say combining SpaceX and xAI could strengthen Musk’s position in national security and defense markets. SpaceX already provides satellite services to U.S. government agencies, while xAI has secured contracts to supply AI tools to the Pentagon.
Musk has followed a similar playbook before. Tesla acquired SolarCity in 2016, and last year Musk folded X into xAI to give the AI startup access to social media data.
Whether SpaceX ultimately merges with Tesla, xAI, or neither, the talks underscore Musk’s ambition to build an integrated platform spanning space, AI, energy and robotics. As the countdown to SpaceX’s IPO continues, investors are watching not just the valuation, but how far Musk is willing to go in reshaping his empire and whether the future he envisions will arrive as one company or many.
