Elon Musk is in advanced discussions over a potential merger of SpaceX and xAI, Bloomberg reported Monday, citing people close to the matter.
The companies, both controlled by the world’s wealthiest man, have privately notified investors about the plan, which could be announced as soon as this week. However, sources told Bloomberg that the talks could continue or fail.
The proposed combination would bring together SpaceX, currently valued at $800 billion as the world’s most valuable private company, with xAI, which reached a $230 billion valuation in November 2025.
Two Nevada entities were filed on January 21, 2026, though no formal agreement has been signed to date. Musk responded positively on X to reports of the merger discussions.
The talks come ahead of SpaceX’s planned IPO in 2026. Musk has previously pursued similar consolidations, including Tesla’s acquisition of SolarCity in 2016 and xAI’s share swap to acquire X in 2025.
The merger could support Musk’s vision of orbit-based AI data centers powered by SpaceX’s satellite network.