Image: SpaceX
SpaceX is reportedly weighing a major consolidation move as it inches closer to a long-anticipated public offering, with discussions underway around a possible merger with either Tesla or artificial intelligence startup xAI. According to Bloomberg, the talks are still exploratory, but they underscore Elon Musk’s growing interest in bringing his sprawling portfolio of companies closer together.
Sources cited by Bloomberg say SpaceX has examined the feasibility of merging with Tesla, an idea that some investors have openly pushed for years. Separately, the rocket maker has also explored a potential tie-up with xAI, Musk’s rapidly expanding AI firm, ahead of what’s expected to be one of the biggest IPOs in history. While no final structure, timing, or valuation has been decided, the conversations alone are enough to get investors and analysts recalculating the future of Musk’s empire.
The timing isn’t accidental. SpaceX’s long-rumored IPO is now materializing in a very real way, with major Wall Street banks reportedly lining up to underwrite a public debut that could value the company north of $1 trillion. Folding in another Musk-led company could complicate that process — but it could also supercharge the narrative around SpaceX’s ambitions beyond rockets and satellites.
A merger with xAI, in particular, would align with Musk’s vision of pushing AI infrastructure into orbit. SpaceX already plays a central role through Starlink and Starshield, both of which rely heavily on AI for satellite operations and national security contracts. Notably, SpaceX last year reportedly invested $2 billion in xAI, and that’s not the only Musk company backing the startup. Just this week, Tesla officially committed roughly $2 billion to acquire a stake in xAI, further tightening the ties between the companies.
This wouldn’t be Musk’s first consolidation play. Last year, he merged X (formerly Twitter) into xAI, giving the AI startup access to massive real-time data and distribution. Musk has also repeatedly spoken about long-term convergence between Tesla, SpaceX, and xAI, suggesting these companies are building toward a shared technological future rather than operating in silos.
Whether SpaceX ultimately merges with Tesla, xAI, or neither, the discussions highlight a familiar Musk strategy: move fast, think big, and blur the lines between industries. With an IPO looming, the next few months could redefine not just SpaceX, but the entire Musk ecosystem.
A merger with either company could be huge!