Starship maker SpaceX could merge with Tesla or xAI, says reports

Elon Musk’s major companies, including SpaceX, Tesla, and xAI, are under discussion to merge into a single company, according to reports from Bloomberg and Reuters.

As of late January, SpaceX is exploring options for a merger, either with electric car maker Tesla or AI startup xAI. One plan focuses on uniting SpaceX and the AI firm before a major SpaceX public offering later this year.

SpaceX develops rockets and satellites. It runs Starlink, a system that provides internet from space using thousands of orbiting devices. The company aims to make space travel easier and more affordable.

On the other hand, Tesla builds electric cars and is working on self-driving. It also produces batteries for energy storage and plans to launch new items like driverless taxis and humanoid robots.

Meanwhile, xAI focuses on creating advanced artificial intelligence. It makes tools like the Grok system and, in 2025, combined with the social media site X, to access more data.

Looking ahead, each company has clear goals. SpaceX prepares for a possible stock market debut that could value it highly. It also considers building AI data centers in space. Tesla plans to start making its Cybercab self-driving vehicle soon and expand production of Optimus robots by next year, with big spending on growth. xAI continues to advance its AI models and build large computing systems to compete in the field.

Bringing these firms closer could link their strengths in new ways. A SpaceX-xAI deal might swap xAI ownership for SpaceX shares, creating a single company that handles space technology, internet satellites, AI development, and online platforms.

This could help build AI systems in orbit, using Starlink to connect them efficiently and reduce energy needs on Earth. Tesla has already put $2 billion into xAI, opening doors for more cooperation, such as using Grok AI in cars or robots.

xAI’s AI tools could improve Tesla’s driving software or enhance SpaceX rocket controls. Starlink might supply fast internet for EVs or support xAI’s data processing. Musk has combined his businesses before, such as adding the X (formerly Twitter) social site to xAI last year or earlier deals with energy firms.

For now, Musk has not shared anything on this matter. However, In the past, Musk said he did not favor a full merger between Tesla and xAI, though he supported investor input on funding ties.