Release date
Elon Musk is considering a potential merger involving SpaceX, Tesla and artificial intelligence company xAI, in what could be one of the most significant corporate restructurings in the technology and aerospace sectors, according to multiple media reports.
SpaceX is rumored to be in talks to merge with xAI ahead of an initial public offering in late 2026, while other reports suggest a merger with Tesla is also being considered as an alternative.
The details of the talks have not been made public, and the structure, timing and rationale for the deal remain unclear, and company representatives have not publicly acknowledged the talks.
The potential merger is widely seen as part of Mr. Musk’s broader strategy to consolidate his companies, which span rockets, satellites, social media and artificial intelligence, into a more integrated technology platform.
valuation stakes
The scale of any deal would be unprecedented. SpaceX was valued at around $800 billion (670.49 billion euros) after a stock sale at the end of 2025, and xAI raised $20 billion (16.76 billion euros) in a Series E round. As a result of recent funding rounds, the platform is valued at around $230 billion (€192.77 billion), according to media reports.
These reported valuations would put the group as a whole worth more than $1 trillion (€839 billion) even before the listing, with some reports suggesting Musk could target a valuation closer to $1.5 trillion (€1.25 trillion) in a future IPO.
This valuation is based on a combination of hardware infrastructure, such as rockets and satellite networks, and AI computing and data platforms, which can command a premium over independent aerospace and software companies.
what it means
For SpaceX, a merger with xAI could accelerate space-based data center development plans aimed at lowering AI computing costs and supporting next-generation models.
For Tesla, the partnership could deepen the integration of its AI software with electric vehicles, robotics and self-driving systems, areas already tied to Mr. Musk’s long-term strategy.
Strategically, the move could give Musk tighter control over the capital, technology development and long-term infrastructure of all three companies, especially when it comes to AI, which is becoming central to his business strategy.
For now, negotiations remain at the exploratory stage, and it has not been confirmed whether the merger will proceed.