SpaceX is reportedly considering strategic options, including a potential merger with Elon Musk’s artificial intelligence startup xAI, as it prepares for an initial public offering (IPO) expected later this year, according to a Bloomberg report.
The discussions are described as preliminary, with no agreements finalized. Under one potential scenario, xAI shares could be exchanged for SpaceX stock prior to the IPO, which is anticipated by mid-2026 and could value the rocket maker at more than $1 trillion.
Some investors have also pushed for a possible merger between SpaceX and Tesla Inc (NASDAQ:TSLA), another Musk-led company, though it remains unclear which, if any, path SpaceX will pursue.
Musk appeared to acknowledge the xAI merger reports in a brief reply on X, responding “Yeah” to a post describing SpaceX as a future “Dyson Swarm company,” a concept referring to a large network of orbiting structures designed to harness energy.
Reuters reported that two entities were recently formed in Nevada to potentially facilitate a SpaceX-xAI transaction, though discussions are ongoing and a deal is not guaranteed, the publication said.