Elon Musk is exploring potential mergers involving his companies SpaceX, Tesla, and artificial intelligence firm xAI, according to multiple media reports.
The discussions, which have not been publicly confirmed by the companies, could result in one of the largest corporate restructurings in the technology and aerospace sectors.
Reports suggest SpaceX is in talks about a possible merger with xAI ahead of a potential initial public offering later in 2026. Separate reporting indicates that a merger involving Tesla has also been considered as an alternative option.
Details of the talks remain unclear, including the structure, timing, and strategic rationale. No official statements have been issued by representatives of SpaceX, Tesla, or xAI.
Industry analysts view the potential consolidation as part of Musk’s broader effort to integrate his businesses, which span space launch services, satellite communications, artificial intelligence, and electric vehicles, into a more unified technology platform.
Valuation implications
Any merger would be unprecedented in scale. SpaceX was valued at approximately $800 billion in a late-2025 share sale, while xAI raised $20 billion in a recent funding round. Media reports have valued xAI at around $230 billion following that fundraising.
Based on those figures, a combined entity could exceed $1 trillion in valuation before any public listing. Some reports suggest Musk may be targeting a valuation closer to $1.5 trillion for a future IPO.
Analysts say such a valuation would reflect the combination of physical infrastructure — including rockets and satellite networks — with artificial intelligence computing and data platforms.
Strategic impact
For SpaceX, a merger with xAI could support plans to develop space-based data centres aimed at lowering AI computing costs. For Tesla, closer integration with AI operations could strengthen work on autonomous driving, robotics, and vehicle software.
The move could also give Musk greater control over capital allocation and technology development across his companies, particularly in artificial intelligence, which has become central to his long-term strategy.
For now, the discussions remain exploratory, and there is no indication that a merger will move forward.
