Elon Musk’s SpaceX and xAI are reportedly holding merger talks
Two Elon Musk companies are reportedly considering a merger. THURSDAY, Reuters reported that SpaceX and xAI are conducting merger talks ahead of a planned IPO. Part of their plan is to launch AI data centers into space (but unfortunately, only as far as Earth orbit).
Last week, it was reported that Musk was planning to take SpaceX public, even though he once said it wouldn’t happen until the company had a presence on Mars. Now, the IPO could take place as early as this year. Shares of xAI would be exchanged for shares of SpaceX as part of the merger. Reuters reports that two entities were created in Nevada on January 21 to facilitate the transaction.
If the idea of two Musk companies becoming one sounds familiar, that’s because it happened less than a year ago. In March 2025, xAI purchased X, bringing Grok (known for his non-consensual “nudifying” images) and
The latest idea Musk is putting forward is to blast AI data centers into space. At last week’s gathering of the rich and powerful in Davos, Switzerland, he said: “The cheapest place to put AI will be in space.” And this will be true within two years, maybe three at the latest. » The idea is that orbiting data centers could harness solar energy and reduce cooling costs. However, analysts and industry executives consider it a risky bet, questioning whether the savings would justify a massive investment. If or when the AI bubble bursts, the plan could go up in flames – if not literally, then figuratively.
