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Elon Musk merger talks involving SpaceX, Tesla and xAI signal a possible reshaping of AI, space and electric vehicle empires.

Elon Musk is quietly exploring the possibility of merging some of his biggest companies, a move that could significantly reshape his growing business empire.

According to reports from Bloomberg and Reuters, early-stage discussions are underway involving SpaceX, Tesla and xAI. While nothing has been finalised, insiders say the talks could eventually lead to one company being folded into another.

Sources cited by Bloomberg say one option under consideration is a merger between SpaceX and Tesla. 

Another possible route would see SpaceX combine with xAI, Musk’s artificial intelligence company that also owns the social media platform X.

Reuters reports that a SpaceX–xAI merger could happen ahead of a planned SpaceX initial public offering expected later this year. 

Such a deal would place Grok, X, Starlink satellites and SpaceX’s rocket operations under a single corporate structure.

None of the companies involved have publicly addressed the merger talks. However, recent regulatory filings suggest preparations may be underway.

On January 21, two new corporate entities K2 Merger Sub Inc. and K2 Merger Sub 2 LLC were registered in Nevada. 

While the filings do not confirm a merger, they indicate that Musk is positioning himself to keep multiple options open.

A combination of SpaceX and xAI could support Musk’s long-stated ambition to place data centres in space, using Starlink’s satellite network and SpaceX’s launch capabilities.

A SpaceX–Tesla deal could also align Tesla’s energy storage and power solutions with future space-based computing infrastructure, creating tighter integration across Musk’s companies.

The merger talks fit into a broader trend of collaboration among Musk’s businesses. Last year, SpaceX agreed to invest $2 billion in xAI, according to The Wall Street Journal. Tesla also disclosed this week that it has invested the same amount in the AI startup.

In 2024,

xAI acquired X in a deal that Musk said valued xAI at $80 billion and X at $33 billion.

SpaceX, founded in 2002, recently conducted a secondary share sale that reportedly valued the company at $800 billion, making it the most valuable private company in the United States.

The Financial Times has reported that Musk is aiming to take SpaceX public as early as June. Still, observers note that Musk’s ambitious timelines often shift, leaving the final outcome uncertain.

For now, the talks remain preliminary, but any merger involving SpaceX, Tesla or xAI would mark one of the most significant corporate shake-ups in modern tech and aerospace history.