Elon Musk, the magnate behind SpaceX, Tesla, and xAI, is advancing talks to merge his aerospace company SpaceX with his artificial intelligence startup xAI, according to a Bloomberg report that has sent shockwaves through the tech world.
The potential deal would unite two of the most valuable private companies on the planet under a single corporate umbrella, with a combined valuation estimated at around US$1.25 trillion, consolidating Musk’s space infrastructure with his artificial intelligence capabilities.
The idea behind the merger is to align space exploration with advances in AI, creating a comprehensive innovation engine that spans Starlink satellites, rockets, data networks, and generative intelligence. Many analysts view this move as a key step ahead of SpaceX’s expected initial public offering (IPO) later this year, which could trigger the largest IPO in history.
This conglomerate would also include the Grok chatbot and AI services currently operating under xAI, further expanding Musk’s reach across sectors ranging from orbital exploration to advanced computing.
Why is this merger so important?
Because it could give rise to an unprecedented company that combines artificial intelligence and space technology to compete with today’s tech giants.