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Elon Musk is exploring potential mergers involving SpaceX, Tesla, and artificial intelligence firm xAI, according to reporting across several outlets, in what could become one of the most consequential corporate restructurings in the technology and aerospace sectors.
It is rumoured that SpaceX is in discussions about merging with xAI ahead of a possible initial public offering later in 2026, while separate reporting suggests a merger with Tesla has also been considered as an alternative path.
The contents of the discussions have not been made public, with deal structure, timing and rationale still unclear, and company representatives have not publicly confirmed the talks.
The potential consolidation is widely seen as part of Musk’s broader strategy to integrate his companies, spanning rockets, satellites, social media, and artificial intelligence into a more unified technology platform.
Valuation stakes
The scale of any deal would be unprecedented. SpaceX was valued at roughly $800bn (€670.49bn) in a late-2025 share sale, while xAI raised $20bn (€16.76bn) in a Series E round. Media reports have valued the platform at about $230bn (€192.77bn) following recent fundraising rounds.
On those reported valuations, a combined group would exceed $1tr (€839bn) in value even before a public listing, with some reports suggesting Musk may target a valuation closer to $1.5tr (€1.25tr) for a future IPO.
That valuation is based on combining hardware infrastructure, like rockets and satellite networks, with AI computing and data platforms, which could command a premium over standalone aerospace or software companies.
What it could mean
For SpaceX, a merger with xAI could accelerate plans to develop space-based data centres aimed at reducing AI computing costs and supporting next-generation models.
For Tesla, a tie-up could deepen integration between AI software and electric vehicles, robotics, and autonomous driving systems, areas already linked to Musk’s long-term strategy.
Strategically, the move could give Musk tighter control over capital, technology development, and long-term infrastructure in all three companies — particularly around AI, which is increasingly central to his business strategy.
For now the talks remain exploratory, with no confirmation that any merger will proceed.