According to a report from Reuters, SpaceX and xAI could merge ahead of a planned SpaceX IPO this year. Both companies are led by Elon Musk. Such a merger would bring together products like the Grok chatbot, the X platform, Starlink satellites, and SpaceX rockets under a single corporation.
While company representatives have not discussed this possibility publicly, recent filings show two new corporate entities were established in Nevada on January 21. They are named K2 Merger Sub Inc. and K2 Merger Sub 2 LLC.
Combining the two companies could allow xAI to place its data centers in space, an ambition Musk has expressed. This move aligns with Musk’s recent strategies to consolidate his companies. Last year, SpaceX agreed to invest two billion dollars in xAI. Earlier this week, Tesla, also led by Musk, revealed it too invested two billion dollars in the AI startup.
Last year, xAI purchased X in a deal that Musk said valued xAI at eighty billion dollars and X at thirty-three billion dollars. SpaceX, founded in 2002, reportedly launched a secondary sale that valued it at eight hundred billion dollars, making it the most valuable private company in the United States.
A recent Financial Times report indicated that Musk wants to take SpaceX public in June. However, Musk’s grand plans have a history of not happening on schedule.