SpaceX and xAI, two companies led by Elon Musk, are in talks about a potential merger ahead of a planned SpaceX initial public offering, Reuters reported. A combined entity would bring together xAI’s Grok chatbot and X platform with SpaceX’s rockets and Starlink satellite network.
While the companies have not publicly commented on the discussions, recent filings show that two new corporate entities, K2 Merger Sub Inc. and K2 Merger Sub 2 LLC, were incorporated in Nevada on January 21. The filings have fueled speculation about a possible corporate restructuring.
A merger could support Musk’s stated interest in expanding xAI’s computing infrastructure, including the use of space-based data centers. The talks would also align with Musk’s broader effort to tighten connections across his businesses.
SpaceX agreed last year to invest $2 billion in xAI, and Tesla recently disclosed a separate $2 billion investment in the AI startup. xAI acquired X in 2024, valuing xAI at $80 billion. SpaceX was recently valued at $800 billion in a secondary sale and is reportedly targeting a public listing later this year.
