Elon Musk’s SpaceX Reportedly Considering Merger With xAI Ahead Of Planned IPO

Under the proposed merger, shares of xAI would be exchanged for shares in SpaceX, Reuters reported.
In this photo illustration, the logo of SpaceX is displayed on a smartphone screen.
In this photo illustration, the logo of SpaceX is displayed on a smartphone screen.(Photo Illustration by VCG/VCG via Getty Images)
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Anan Ashraf·Stocktwits
Published Jan 29, 2026   |   1:55 PM EST
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Elon Musk’s rocket manufacturing company SpaceX is reportedly in talks with the billionaire’s AI startup xAI about a potential merger ahead of a blockbuster public offering. 

Reuters reported on Thursday, citing people familiar with the matter and company filings, that the combination would give fresh momentum to SpaceX’s effort to launch data centers ‍into orbit. 

Under the proposed merger, shares of xAI would be exchanged for shares in SpaceX, the report added. 

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