• SpaceX and xAI are discussing a merger that could unite rockets, satellites, social media, and AI under one corporate structure.
• The talks could strengthen SpaceX’s push into space-based data centers as global competition in artificial intelligence accelerates.
• While details remain limited, the move signals strategic positioning ahead of a possible high-profile public listing.

SpaceX

Elon Musk is considering a major restructuring of his business empire as SpaceX moves closer to a potential public offering. According to Reuters, SpaceX and Musk’s artificial intelligence company, xAI, are in discussions to merge ahead of a possible IPO planned for later this year.

The proposed deal would bring SpaceX’s launch business, Starlink satellite network, the X social media platform, and the Grok AI chatbot under a single corporate roof. The discussions are still private, and the companies have not confirmed whether a transaction will move forward.

The merger could give fresh momentum to SpaceX’s longer-term strategy, particularly its plans to develop space-based data centers. These centers would rely on satellite infrastructure to support large-scale computing, a capability that could become increasingly valuable as demand for AI processing grows.

Musk currently serves as chief executive of both SpaceX and xAI. The AI company also controls X, the social media platform Musk acquired in 2022. Reuters noted that neither Musk nor the companies responded to requests for comment on the talks.

Merger

Under the proposed structure, shares in xAI would be exchanged for shares in SpaceX. To support the potential transaction, two new entities were registered in Nevada earlier this month, according to corporate filings reviewed by Reuters.

One of the newly formed entities lists SpaceX and the company’s chief financial officer as managing members. The second entity lists the CFO as its sole officer. The filings do not disclose the purpose of the entities or provide details on how they would be used in a deal.

Reuters said it could not determine the valuation of the proposed merger, its primary rationale, or its expected timing. However, the discussions come as SpaceX faces intensifying competition in artificial intelligence from major technology players including Google, Meta, and OpenAI.

For investors, the talks highlight how Musk is increasingly linking space infrastructure with AI development. If completed, the merger could reshape SpaceX’s investment story ahead of any IPO and position the company at the intersection of connectivity, data, and artificial intelligence.