
"SpaceX is considering a potential merger with Tesla Inc., as well as an alternative combination with artificial intelligence firm xAI, according to people familiar with the matter, a sign billionaire Elon Musk is weighing how to consolidate his empire. The firm has discussed the feasibility of a tie-up between SpaceX and Tesla, an idea that some investors are pushing, the people said, asking not to be identified as the information isn't public."
"Musk's Vision Different parts of Musk's grand vision for SpaceX of the company putting data centers into space to do complex computing for AI would potentially be served by the various scenarios. xAI could benefit enormously from computing capacity provided by SpaceX's data centers in orbit, if the company can make the engineering work. Tesla's ability to manufacture energy storage systems could help SpaceX use solar energy in space to run the data centers."
SpaceX is considering a potential merger with Tesla or a combination with AI firm xAI ahead of an IPO. Investors have promoted a SpaceX–Tesla tie-up and an alternative SpaceX–xAI deal. Any transaction could attract interest from infrastructure funds and Middle Eastern sovereign investors and may require large financing. No final decisions have been made and the companies could remain separate. Tesla shares jumped as much as 5.6%, valuing the company at about $1.65 trillion. Musk envisions putting data centers into orbit for complex AI computing. xAI could benefit from orbital computing capacity and Tesla’s energy-storage manufacturing could support solar power for space data centers. Musk has discussed using Starship to carry Optimus robots to the moon and Mars.
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