SpaceX eyes merger with xAI that would unite Grok, Starlink, and X under one roof

SpaceX is negotiating a merger with Elon Musk's AI company xAI ahead of a planned IPO, Reuters reports. The deal would bring SpaceX, Starlink satellites, the social media platform X, and the Grok chatbot under one corporate roof.

According to Reuters, the merger would involve exchanging xAI shares for SpaceX stock. Two companies were reportedly incorporated in Nevada on January 21 to handle the transaction. One of them lists SpaceX and its CFO Bret Johnsen as managing partners. Some xAI executives may receive cash instead of shares.

No final agreement has been signed yet, and the timeline and structure remain undecided, Reuters says. SpaceX is currently the world's most valuable private company at $800 billion, while xAI was valued at $230 billion in November. According to Bloomberg, SpaceX is also exploring a merger with Tesla.