Elon Musk's SpaceX and his artificial intelligence firm xAI are in discussions to merge ahead of the rocket maker's potential blockbuster IPO, according to reports from Reuters. The move would combine SpaceX's rockets and Starlink satellites with xAI's Grok chatbot and AI research under a single entity.
The proposed deal would reportedly involve an exchange of xAI shares for stock in SpaceX, with legal entities to facilitate the transaction established in Nevada on January 21. This consolidation aligns with Musk's strategy to build space-based AI data centers, fusing satellite infrastructure with artificial intelligence computing.