Reports indicate that discussions are underway around a possible merger involving three companies controlled by Elon Musk — SpaceX, Tesla, and artificial intelligence firm xAI.

According to Bloomberg and Reuters, the talks are still at an early stage, but insiders suggest the outcome could see one or more of the companies folded into SpaceX as Musk considers restructuring his growing business portfolio.

Two potential paths are said to be under consideration. One option would involve a merger between SpaceX and Tesla, while another would combine SpaceX with xAI, the AI startup that already owns the social media platform X.

Sources cited by Bloomberg say the scenarios are still fluid, with no final decision reached.

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

Such a move would place a wide range of assets — including SpaceX’s rockets, Starlink satellites, the Grok chatbot, and the X platform — under a single corporate structure, potentially creating one of the most vertically integrated tech and aerospace firms in the world.

While executives from SpaceX and xAI have not publicly commented on the talks, recent corporate filings have fueled speculation.

Records show that two new entities, K2 Merger Sub Inc. and K2 Merger Sub 2 LLC, were registered in Nevada on January 21, suggesting preparatory steps for possible consolidation. Industry analysts say this indicates Musk is positioning himself to act quickly if conditions align.

Strategically, each merger option offers potential advantages. A SpaceX–xAI combination could support Musk’s long-term vision of hosting data centers in space, while a SpaceX–Tesla deal could link Tesla’s energy storage capabilities to that ambition.

These discussions follow a pattern of growing collaboration among Musk’s companies, including recent $2 billion investments by both SpaceX and Tesla into xAI.

With SpaceX reportedly valued at about $800 billion in a secondary sale, any merger would mark a major shift in the global technology and aerospace landscape.

Source: Techcrunch