Elon Musk’s SpaceX is reportedly considering potential mergers with either xAI or Tesla, as the company prepares for a significant initial public offering (IPO) slated for mid-June 2026. According to Reuters, discussions are already underway regarding merging with xAI, a company also led by Musk, which would align with SpaceX’s plans to establish data centers in space.
Later reports from Bloomberg indicated that SpaceX is weighing its options, potentially merging with Tesla or pursuing an alternative combination with xAI. The specifics regarding the timing and value of any such deal remain uncertain. SpaceX has been eyeing a public offering date that coincides with Musk’s birthday, creating a unique narrative around the IPO.
The implications of a merger with xAI could place SpaceX in a more complex landscape, given xAI’s current scrutiny over its AI product, Grok, which is under investigation in the European Union for controversial deepfake technology. Merging with Tesla or xAI would not only consolidate Musk’s ventures but also reflect a broader strategy of integrating aerospace, social media, and artificial intelligence under a unified corporate structure.
Recent financial movements further highlight the interconnectedness of these companies. Tesla announced plans to invest approximately $2 billion in xAI, alongside a previous sale of $430 million worth of backup batteries to the AI firm in 2025. This continuing relationship between the companies underscores a strategic alignment that could benefit a merger.
As it stands, SpaceX, Tesla, and xAI have not provided official comments regarding the reported merger discussions, leaving the market speculating on the potential outcomes. If the merger proceeds, it would mark another milestone in Musk’s ambitious career, characterized by bold ventures across multiple high-tech industries.
With increasing interest in SpaceX’s upcoming IPO, the combination of these companies could reshape the technological landscape and set new benchmarks in the aerospace and AI sectors. The evolving situation continues to attract attention from investors and industry analysts alike, eager to see how Musk’s vision unfolds in the coming months.
