SpaceX and xAI Reportedly in Merger Talks Ahead of IPO

SpaceX is in discussions with xAI, the artificial intelligence company founded by Elon Musk, about a potential merger ahead of SpaceX’s planned initial public offering, reports Reuters via Bloomberg. The merger could unite Musk’s ventures spanning rockets, Starlink satellites, the X social platform, and the Grok AI chatbot under a single corporate structure.

According to the report, shares of xAI would be exchanged for SpaceX stock. Two legal entities were established in Nevada on January 21 to facilitate the possible transaction. Some xAI executives might have the option to receive cash instead of SpaceX shares. No final agreement has been signed, and the structure and timing of the deal remain uncertain.

SpaceX is reportedly targeting an IPO that could value the company at around $1.5 trillion and raise as much as $50 billion. The listing could occur as soon as June, with major financial institutions including Bank of America, Goldman Sachs, JPMorgan, and Morgan Stanley expected to participate.

The merger discussions align with Musk’s broader plans to fund projects such as building data centers in space for advanced AI computing and accelerating development of the Starship rocket program.