Elon Musk’s SpaceX and xAI are reportedly holding merger talks

Two Elon Musk firms are reportedly planning to merge. On Thursday, Reuters reported that SpaceX and xAI are holding merger talks forward of a deliberate IPO. A part of their plan is to launch AI knowledge facilities into area (however sadly, solely so far as Earth’s orbit).

Final week, it was reported that Musk planned to take SpaceX public regardless of having as soon as mentioned it wouldn’t occur till the corporate had a presence on Mars. Now, the IPO might occur as early as this yr. Shares of xAI would reportedly be exchanged for shares in SpaceX underneath the merger. Reuters stories that two entities have been arrange in Nevada on January 21 to facilitate the deal.

If the concept of two Musk firms changing into one sounds acquainted, that is as a result of it occurred lower than a yr in the past. In March 2025, xAI purchased X, placing Grok (recognized for nonconsensual “nudifying” images) and X (notorious for being a far-right hellscape) collectively under one unholy roof.

The most recent concept Musk is pitching is blasting AI knowledge facilities off into area. Eventually week’s gathering of the wealthy and highly effective in Davos, Switzerland, he mentioned, “The bottom price place to place AI shall be in area. And that shall be true inside two years, perhaps three on the newest.” The concept is that knowledge facilities in orbit might harness solar energy and cut back cooling prices. Nevertheless, trade analysts and executives think about it a dangerous wager, questioning whether or not the financial savings would warrant the huge funding. If or when the AI bubble bursts, the plan might go down in flames — if not actually, then figuratively.