SpaceX and xAI Merger Talks Ahead of IPO Could Reshape AI and Space Industries

Elon Musk's SpaceX is reportedly in advanced discussions to merge with artificial intelligence venture xAI before its anticipated initial public offering. The deal, if finalized, WOULD combine Musk's aerospace ambitions with his AI initiatives, creating a conglomerate spanning orbital data centers, satellite internet, social media, and generative AI.

The proposed structure would exchange xAI equity for SpaceX shares through Nevada-based entities established for the transaction. While financial terms remain undisclosed, market observers anticipate significant valuation upside given the combined entities' technological synergies and Musk's track record of disruptive innovation.

Investor enthusiasm for Musk-affiliated companies often creates cross-portfolio momentum. Tesla shares demonstrated this volatility, dipping 3% during Thursday's session before rebounding post-market despite revenue slightly missing analyst estimates at $24.9 billion.