Musk is in advanced talks to merge SpaceX and xAI. Tesla shares fell
The option of merging SpaceX with Tesla was also considered, Bloomberg wrote
Elon Musk is negotiating a deal to merge SpaceX and xAI / Photo: X/SpaceX
Elon Musk is in advanced talks to merge his space company SpaceX with his own artificial intelligence startup xAI, Bloomberg reported, citing sources. According to them, the companies have informed some investors about the plans to merge. The agreement could be announced as early as this week, but negotiations are ongoing and could drag on or fall apart, the sources added.
Representatives for SpaceX and xAI did not respond to Bloomberg's inquiries.
Last week, Bloomberg sources said that SpaceX was considering a merger with electric car maker Tesla, which Musk also runs. This news caused the growth of Tesla shares by 3% on Friday, January 30. However, in trading on February 2, quotes of the company's securities, on the contrary, fell in the moment by 3.7% - to $414.5.
What does that mean?
The deal would bring together two companies that are among the world's largest privately held organizations. In addition, the possible merger of SpaceX and xAI shows that Elon Musk's vision of creating a world based on artificial intelligence has become too expensive for either of his companies to handle separately, according to Bloomberg. Bloomberg's sources said xAI is spending $1 billion a month, forcing Musk to more actively blur the boundaries between his companies, pool resources and reconsider whether to keep his massive projects separate.
By combining the loss-making AI startup with the more mature SpaceX, Musk could also formalize his idea of putting data centers in space. As part of that plan, SpaceX is seeking permission to put up to one million satellites into Earth's orbit, according to a Jan. 30 filing.
SpaceX is preparing for an IPO: it could take place as early as 2026, the Financial Times and Reuters wrote. On January 29, Tesla disclosed a deal to invest about $2 billion in AI startup xAI: on January 16, the company agreed to buy preferred shares of xAI as part of its funding round. Also, WSJ reported in July 2025 that SpaceX would invest $2 billion in xAI as part of a $5 billion round.
This article was AI-translated and verified by a human editor
