Elon Musk's technology empire is undergoing an unprecedented structural transformation. According to the latest reports from Bloomberg and Reuters, SpaceX, xAI, and Tesla, the publicly traded company, are exploring the possibility of a merger. Although the negotiations are still in the early stages, this move could mark the continuous entrepreneur's attempt to integrate his resources in space, artificial intelligence, and autonomous driving into a single "super entity."
Two Core Proposals Emerge
The current focus is on two paths:
SpaceX + Tesla: Aimed at achieving deep collaboration between aerospace engineering and the automotive industry, allowing Tesla's energy storage business to better support future space infrastructure.
SpaceX + xAI: Integrating xAI and its X platform into SpaceX. This move may be completed before SpaceX's planned IPO in mid-2026, at which time the Grok chatbot, Starlink, and heavy rockets will belong to the same company.
Capital Structure and the Mysterious Entity "K2"
Signs of the merger have already emerged in recent capital operations. Recent regulatory filings show that two entities named K2Merger Sub Inc. and K2Merger Sub2LLC were established in Nevada on January 21, which is usually a prelude to mergers or reorganizations.
At the same time, financial transactions among the three companies are becoming increasingly frequent. SpaceX and Tesla recently each invested 2 billion USD in xAI. Currently, the valuation of SpaceX in the secondary market has soared to 800 billion USD, making it the highest-valued private company in the United States; while xAI's valuation has reached approximately 80 billion USD.
Strategic Vision: Space Data Centers
Musk's obsession with the merger stems from his grand vision of "space artificial intelligence." If SpaceX successfully integrates with xAI, xAI's massive computing needs will be directly supported by data centers deployed in space, achieving cost optimization and technological breakthroughs. In addition, this integration will also pose a more direct challenge to competitors like Siri from Musk's ecosystem.
Although representatives of the companies have not yet made official comments, Cook's strong stance on Apple's privacy rules contrasts sharply with Musk's aggressive integration strategy: one side is a conservative giant upholding end-side privacy, while the other is a tech giant trying to break industry boundaries and build a comprehensive empire.
