Elon Musk is currently in advanced negotiations regarding the possible merger of SpaceX and xAI, as reported by Bloomberg. Both companies, under Musk's control, have informed their investors about this potential move, which could be announced imminently. However, it's essential to note that these discussions may either progress or cease without conclusion.
By merging SpaceX, valued at $800 billion, with xAI, which achieved a $230 billion valuation in late 2025, the integration could provide significant strategic advantages. There have been two entities established in Nevada as of January 21, 2026, although no formal agreement exists yet. Musk's positive engagement on X indicates a favorable outlook regarding these merger discussions.
The significance of this merger is amplified by the impending SpaceX IPO planned for 2026. Musk has a history of pursuing mergers and acquisitions, including Tesla’s merger with SolarCity in 2016 and xAI’s share swap to obtain X in 2025.
Furthermore, consolidating these two companies might enhance Musk's ambitious vision of developing orbit-based AI data centers that could utilize SpaceX's satellite network.