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

Elon Musk’s companies SpaceX and xAI are reportedly in discussions to merge ahead of a planned SpaceX initial public offering (IPO) expected later in 2026. The merger would consolidate Musk’s ventures, bringing together products such as the Grok chatbot, the X social media platform, Starlink satellites, and SpaceX rockets under a single corporate entity. Although company officials have not publicly confirmed the talks, recent filings reveal the creation of two new Nevada-based entities, K2 Merger Sub Inc. and K2 Merger Sub 2 LLC, which may be linked to the merger process. The potential merger aligns with Musk’s broader strategy of integrating his companies and could enable xAI to deploy its data centers in space, a goal Musk has expressed interest in. Financially, SpaceX invested $2 billion in xAI last year, with Tesla also contributing $2 billion recently. xAI previously acquired X in a deal valuing xAI at $80 billion and X at $33