Elon Musk is reportedly planning to merge SpaceX with his artificial intelligence company, xAI. According to sources familiar with the matter, the deal was announced in a memo on Monday. The combined entity could consolidate Musk’s growing ambitions in both AI and space exploration. SpaceX is a space manufacturer and space transportation company. XAI is an artificial intelligence research and deployment company.
The deal is expected to value the combined company at $US1.25 trillion, pricing shares at approximately $US527 each. Representatives for SpaceX and xAI have not yet responded to requests for comment. SpaceX had previously considered an initial public offering potentially raising up to $50 billion, and also discussed a merger with Tesla.
The proposed merger would unite two of the world’s largest private companies. XAI raised funds earlier this year at a $US230 billion valuation, while SpaceX was considering a share sale in December valuing the company at approximately $US800 billion. This merger further intertwines Musk’s various business ventures, following his acquisition of Twitter, later renamed X, and its subsequent merger with xAI in a $33 billion deal.
The integration could potentially align with Musk’s vision of establishing data centres in space for complex AI computing. SpaceX has reportedly requested permission to launch up to one million satellites into Earth’s orbit as part of this plan. The arrangement is designed to pool capital, talent, and access to compute, and could blur traditional corporate boundaries.
