A report says SpaceX is negotiating a merger with xAI ahead of xAI‘s planned IPO to speed work on orbital data centers and boost its AI efforts. The talks involve two Nevada entities set up to facilitate a share-swap transaction.
The proposed deal would combine rockets, Starlink satellites, the X platform and the Grok chatbot into a single public offering. Such an IPO would likely attract strong investor interest given the brands involved.
Under the plan, holders of xAI shares would receive SpaceX stock in exchange. The report did not disclose the merger’s value, main rationale, or timing.
Investor sentiment across Musk’s companies often moves together, and the merger could influence Tesla shares. After earnings that beat forecasts, TSLA initially fell about 3% and later rose roughly 3% after markets closed.
For the quarter, Tesla posted revenue near $24.9 billion versus $25.1 billion estimated, a 2.4% year‑over‑year decline. Adjusted EPS was $0.50 versus $0.45 expected, operating income about $1.4 billion versus $1.3 billion estimated, and Q4 gross margin was 20.1%.
