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Billionaire entrepreneur Elon Musk is reportedly exploring mergers between his space-exploration company SpaceX and his artificial intelligence venture xAI, and possibly electric vehicle maker Tesla, according to multiple business news outlets. These discussions are emerging as SpaceX prepares for a planned initial public offering (IPO) later this year, and represent one of the most ambitious consolidation ideas in the modern technology sector.
According to sources cited by financial news agencies, SpaceX is in early merger talks with xAI ahead of the planned IPO, which could value the aerospace company at well over $1 trillion. A merger of this scale would unify SpaceX’s rocket and satellite operations, including its Starlink broadband constellation, with xAI’s artificial intelligence assets like the Grok chatbot and the X social media platform, which xAI acquired in 2025.
In addition to discussions with xAI, SpaceX has also explored a tie-up with Tesla Inc., another Musk-led company. Bloomberg was the first to break this news that Musk is looking into the possibility of merging SpaceX with his publicly traded electric vehicle company, Tesla Inc.
Musk recently shared a link to a Reuters article on X, mentioning that SpaceX is on the verge of becoming “the Dyson Swarm company.” It clearly refers to the idea of a massive structure made up of satellites orbiting the sun, based off of the word Dyson, as in Dyson Sphere, a a hypothetical megastructure encircling a star to capture nearly all its energy.
Last week, the entrepreneur took the stage at the World Economic Forum in Davos, Switzerland, where he shared his vision that space could become “the lowest-cost place to put AI.” He suggested this could become a reality in “two years, maybe three at the latest.”
Musk envisions space-based data centers powered entirely by solar energy, which he believes would significantly reduce the costs associated with the computing power needed to train and operate AI models like Grok. He’s not alone in this line of thinking; Google LLC is also exploring this idea with a project called Suncatcher, which is investigating the viability of data centers in space. Experts think merging all the three companies can bring Musk a small step closer to that reality.
While early-stage talks show conceptual interest, no final agreements have been signed, and details on transaction structure, timing, and regulatory compliance are not yet clear.
