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SpaceX Reportedly Weighs Mergers with Tesla or xAI Ahead of IPO

SpaceX aims to merge with xAI before a planned IPO, combining rockets, satellites, AI, and social media under one roof to build space-based AI data centers, valued at $1 trillion combined.

  • On Jan 29, Reuters reported SpaceX and xAI are in discussions to merge ahead of a planned SpaceX IPO later this year.
  • Industry observers note the orbital-data rationale behind the discussions, and SpaceX's IPO target of about $1.5 trillion could motivate packaging additional assets this year, Elon Musk said.
  • Filings show two Nevada entities were established on January 21: K2 Merger Sub Inc. and K2 Merger Sub 2 LLC, with Bret Johnsen, SpaceX chief financial officer, named managing member or sole officer.
  • Market reaction was immediate, with Tesla's stock up after the news as Tesla's shares rose 3% in after-hours trading, and Elon Musk, SpaceX and xAI did not respond to requests for comment.
  • Analysts say the combination would complicate the IPO but boost orbital AI ambitions, attracting infrastructure funds and Middle Eastern sovereign investors while leveraging Grok's $200 million Pentagon contract and Starshield's classified AI satellites.
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Forbes broke the news in United States on Thursday, January 29, 2026.
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