"Elon Musk is in advanced talks to combine SpaceX with xAI, according to people familiar with the matter, underscoring how the billionaire's vision for an artificial intelligence-powered world has grown too costly for any one of his entities to shoulder alone. Musk's rocket and satellite group and his artificial intelligence firm have informed some of their investors about the plans, the people said, asking not to be identified because the information is private."
"A deal would combine two of some of the largest closely held companies in the world. xAI raised funds at a $200 billion valuation in September, while SpaceX was set to go ahead with a share sale in December at about an $800 billion valuation. The central catalyst for a merger is AI's insatiable need for capital. The rate at which xAI has been burning through cash around $1 billion a month has compelled Musk to further blur corporate boundaries, pool capital."
Elon Musk is in advanced talks to merge SpaceX and xAI, with the companies informing some investors and a possible announcement as soon as this week. The deal would unite two of the largest privately held firms, with xAI valued at $200 billion and SpaceX preparing a share sale around an $800 billion valuation. xAI reportedly burns about $1 billion per month, prompting capital pooling and blurred corporate boundaries. Leadership roles may shift, with Gwynne Shotwell and xAI CFO Anthony Armstrong potential executives in a merged entity. The merger could support Musk's plan for space-based data centers and permission to deploy up to one million satellites.
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