Image: SpaceX
Elon Musk may be preparing his biggest corporate consolidation yet. According to Bloomberg, SpaceX is in advanced talks to combine with xAI, Musk’s artificial intelligence startup, as he accelerates efforts to unify his sprawling empire under a single, long-term vision.
The discussions are said to be far along, with SpaceX and xAI reportedly informing some investors about the potential deal. Bloomberg notes that an announcement could come as soon as this week, though negotiations are still ongoing and could ultimately fall apart. Neither SpaceX nor xAI has officially commented, but Musk himself appeared to all but confirm the rumors with a simple “Yes” reply on X to a post highlighting the report.
If completed, the merger would bring together two of the largest privately held companies in the world. xAI was valued at roughly $200 billion during a funding round last September, while SpaceX was reportedly preparing a share sale late last year at an estimated $800 billion valuation. Combined, the deal would create a staggering powerhouse spanning rockets, satellites, and frontier AI.
Strategically, the move makes sense. A combined SpaceX-xAI entity could help realize Musk’s vision of placing massive data centers in space to handle advanced AI workloads. SpaceX has already filed requests seeking permission to launch up to one million AI satellites into orbit as part of this broader plan, and xAI could bring the AI chops to back those ambitions.
This isn’t coming out of nowhere. Just last week, reports suggested SpaceX was weighing a massive merger with either xAI or Tesla as its long-anticipated IPO draws closer. SpaceX has already invested heavily in xAI, reportedly committing $2 billion last year. Tesla has also joined in, with the automaker recently confirming that it is investing roughly $2 billion to acquire a stake in the AI startup.
Musk has a track record of consolidation. Last year, he merged xAI with X, signaling that he views integration, not separation, as the future of his companies. He has also often spoken about the long-term convergence of Tesla, SpaceX, and xAI, particularly as AI, robotics, autonomy, and space-based infrastructure increasingly overlap.
All of this unfolds as SpaceX’s long-rumored IPO begins to look real, with major Wall Street banks reportedly lining up to underwrite what could become one of the largest public offerings in history. Whether or not this specific merger materializes, the direction is clear: Musk is rapidly aligning his companies around a single, vertically integrated AI and space strategy.
