Elon Musk’s SpaceX and xAI are reportedly discussing a possible merger

Elon Musk Reportedly Considering Merger of SpaceX and xAI Before IPO

Elon Musk, who leads the Department of Government Efficiency (DOGE), addresses attendees at the Conservative Political Action Conference (CPAC) held at the Gaylord National Resort & Convention Center in Oxon Hill, Maryland, on February 20, 2025. (Photo by SAUL LOEB / AFP / Getty Images)

According to a Reuters report, Elon Musk is exploring the possibility of merging his companies SpaceX and xAI ahead of SpaceX’s anticipated public offering this year. Such a merger would unite a range of Musk’s ventures—including the Grok chatbot, the X social platform, Starlink satellite network, and SpaceX’s launch services—under a single corporate umbrella.

Although there has been no official statement from company spokespeople regarding these merger discussions, recent legal documents reveal the creation of two new business entities in Nevada on January 21: K2 Merger Sub Inc. and K2 Merger Sub 2 LLC.

Bringing SpaceX and xAI together could pave the way for xAI to deploy its data centers in orbit, a concept Musk has previously expressed interest in.

Musk’s Ongoing Efforts to Consolidate His Companies

• Last year, SpaceX committed $2 billion to xAI, as reported by The Wall Street Journal.
• Earlier this week, Tesla, another Musk-led company, also invested $2 billion in xAI.

In 2025, xAI acquired X in a transaction that valued xAI at $80 billion and the X platform at $33 billion. SpaceX, established in 2002, reportedly initiated a secondary share sale that valued the company at $800 billion, making it the most valuable privately held business in the United States.

The Financial Times recently reported that Musk is aiming to take SpaceX public as early as June. However, it’s worth noting that Musk’s ambitious timelines often face delays.