Reports from Bloomberg suggest that Elon Musk’s ventures, SpaceX and Tesla, might be integrated. A merger with the entrepreneur’s AI startup, xAI, is also being considered as a separate possibility. To facilitate these plans, two new entities have already been established in Nevada.
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Photo: Alex G Perez / Reuters
Photo: Alex G Perez / Reuters
SpaceX, the aerospace company owned by American billionaire Elon Musk, is reportedly contemplating a consolidation with Tesla or exploring an alternative transaction involving the businessman’s artificial intelligence enterprise, xAI. This information comes from Bloomberg, citing insider sources.
Conversations within SpaceX are reportedly revolving around a merger with Tesla, an idea that has gained traction among certain investors, according to the agency’s contacts. Concurrently, the firm is assessing the option of joining forces with Musk’s AI venture, xAI, in anticipation of the latter’s forthcoming Initial Public Offering in June. Sources emphasize that a definitive commitment has yet to be made, and all three organizations maintain the option of continuing as independent entities.
Any of these potential transactions could attract the interest of infrastructure and sovereign wealth funds originating from Middle Eastern nations. Furthermore, substantial external capital infusion might be required to execute such a deal, the article notes.
These diverse possibilities align with Musk’s extended strategic outlook for SpaceX’s evolution, the publication states. Specifically, SpaceX is exploring the feasibility of deploying data centers in space to handle intensive artificial intelligence computations. Should this materialize, xAI could potentially gain access to SpaceX’s computational power, assuming the technical challenges are overcome. Tesla, conversely, could contribute to SpaceX’s progression by manufacturing energy storage solutions powered by solar sources to energize these space-based data centers. Musk has also previously discussed the prospect of employing Starship rockets to transport Tesla’s Optimus robots to the Moon and Mars.
Following the release of this news, Tesla shares surged by 4.5% in after-hours trading, bringing the company’s market valuation to approximately $1.56 trillion. Meanwhile, SpaceX is reportedly aiming for an IPO valuing the company around $1.5 trillion, according to the report.
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