Talks regarding a merger between SpaceX and xAI have emerged, with discussions reportedly taking place ahead of a potential initial public offering (IPO). The merger could lead to a share exchange where xAI shares are traded for those of SpaceX. This development comes as Musk aims to go public with SpaceX, despite his previous claims that an IPO would only occur after establishing a presence on Mars.
On January 21, two entities were established in Nevada to assist with the merger process. The merger follows a prior consolidation when xAI acquired X in March 2025, which combined two controversial platforms under one management. Musk's vision includes launching AI data centers into Earth's orbit, a concept he discussed at the recent gathering in Davos, Switzerland. He suggested that this approach could significantly reduce operational costs through solar energy.
Despite the ambitious plans, analysts express skepticism about the feasibility and financial implications of such a venture, raising concerns about the potential risks associated with investing in space-based infrastructure. If the predicted AI bubble collapses, the initiative may face significant challenges.