Elon Musk’s SpaceX and xAI in talks to merge, report says

SpaceX and xAI, both companies led by Elon Musk, may merge ahead of the SpaceX IPO planned for this year, according to a report from Reuters. This would bring things like Grok chatbot, X platform, Starlink satellites, and SpaceX rockets together under one organization.

Company representatives have not discussed this publicly. However, recent documents show that two new entities were established in Nevada on January 21, which are called K2 Merger Sub Inc. and K2 Merger Sub 2 LLC.

Combining the two companies could allow xAI to put its own data center into space, something Musk said he has said that he wants to.

The move could also be in line with Musk’s recent plans to consolidate his companies. Last year, SpaceX agreed to invest $2 billion in xAI, according to The Wall Street Journaland earlier this week, Tesla (also led by Musk) revealed, too, invested $2 billion at the beginning of AI.

Last year, xAI he bought X in the agreement Musk said the value of xAI is $ 80 billion and X at $ 33 billion. SpaceX, which has been around since 2002, is said to have launched a second sale which made it worth $800 billion, making it the most valuable private equity firm in the US

A recent report by the Financial Times stated that Musk wants to take over SpaceX people in June. Then again, Musk’s big plans it rarely happens.