Elon Musk’s SpaceX and xAI are reportedly holding merger talks

Two Elon Musk firms are reportedly planning to merge. On Thursday, Reuters reported that SpaceX and xAI are holding merger talks forward of a deliberate IPO. A part of their plan is to launch AI knowledge facilities into house (however sadly, solely so far as Earth’s orbit).

Final week, it was reported that Musk planned to take SpaceX public regardless of having as soon as stated it wouldn’t occur till the corporate had a presence on Mars. Now, the IPO may occur as early as this yr. Shares of xAI would reportedly be exchanged for shares in SpaceX beneath the merger. Reuters reviews that two entities had been arrange in Nevada on January 21 to facilitate the deal.

If the concept of two Musk firms changing into one sounds acquainted, that is as a result of it occurred lower than a yr in the past. In March 2025, xAI purchased X, placing Grok (recognized for nonconsensual “nudifying” images) and X (notorious for being a far-right hellscape) collectively under one unholy roof.

The newest thought Musk is pitching is blasting AI knowledge facilities off into house. Eventually week’s gathering of the wealthy and highly effective in Davos, Switzerland, he stated, “The bottom value place to place AI shall be in house. And that shall be true inside two years, perhaps three on the newest.” The thought is that knowledge facilities in orbit may harness solar energy and scale back cooling prices. Nonetheless, business analysts and executives take into account it a dangerous guess, questioning whether or not the financial savings would warrant the large funding. If or when the AI bubble bursts, the plan may go down in flames — if not actually, then figuratively.