After his decision to use Tesla money to fund xAI, it looks like Tesla CEO, Elon Musk wants to merge all his companies together.
SpaceX is exploring deals with other companies helmed by serial entrepreneur Elon Musk, leaving investors working through permutations between space, autonomous driving and artificial intelligence to analyze which combination makes the most sense.
Bloomberg reported that SpaceX is also considering a merger with Musk’s electric vehicle maker Tesla.
“I think it’s highly likely that (xAI) ends up with one of the two parties,” said Tesla shareholder Gene Munster, who is managing partner at xAI investor Deepwater Asset Management.
READ: SpaceX rival United Launch Alliance CEO resigns (
The rocket maker is in discussions to merge with xAI ahead of a blockbuster public offering planned for this year, Reuters reported on Thursday. The combination would bring Musk’s rockets, Starlink satellites, X social media platform and Grok chatbot under one roof, according to a person briefed on the matter and two regulatory filings.
“Musk has too many separate companies,” said Dennis Dick, chief market strategist at Stock Trader Network. “A major risk thesis for Tesla is that Musk is spreading himself out too much. As a Tesla shareholder, I applaud further consolidation.”
Under a SpaceX-xAI merger, xAI shares would be exchanged for SpaceX shares.
If SpaceX proceeds with consolidating its operations alongside Musk’s other ventures, the move could signal a new phase in the way Musk manages his sprawling business empire. Centralizing operations may allow for greater strategic coherence, enabling technologies developed in one company to be more easily integrated into others.
This could accelerate innovation, streamline decision-making, and reduce redundancies across research, development, and operational efforts. For investors, a more unified structure could clarify growth prospects and make valuations more straightforward, while potentially mitigating concerns about Musk spreading his attention too thin across multiple high-profile companies.
From a competitive perspective, consolidating assets could enhance SpaceX’s position in emerging technology markets, particularly in artificial intelligence, autonomous systems, and space-based infrastructure.
By aligning expertise, talent, and technological capabilities under a single organizational umbrella, Musk may be better positioned to pursue ambitious projects that intersect multiple industries, from aerospace and defense to AI-driven commercial applications.
Folding in xAI could also boost SpaceX’s prospects for contracts at the Pentagon, which has sought to ramp up AI adoption in military networks, said Caleb Henry of space research and advisory Quilty Analytics.
Combining different corporate cultures, compliance requirements, and financial structures could create friction or slow down execution if not carefully managed. How Musk navigates these complexities will likely influence both short-term performance and long-term strategic outcomes.
READ: SpaceX to pursue ‘one of the largest’ IPOs in 2026 (
Ultimately, the potential consolidation reflects Musk’s continued ambition to create a cohesive ecosystem of interrelated technologies, potentially positioning SpaceX and his other ventures for a new era of innovation and market influence, though the exact outcome remains uncertain and depends on regulatory approvals, investor support, and execution.
The broader implications of any consolidation could reshape investor perceptions of Musk’s ventures, potentially attracting capital from those seeking exposure to a unified tech ecosystem.
Market reactions may vary depending on how successfully the integration is communicated and executed, and analysts may debate whether synergies outweigh the risks of overconcentration. Additionally, such a move could influence industry dynamics, prompting competitors to consider partnerships, mergers, or new strategies to remain competitive in overlapping sectors.