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Elon Musk’s SpaceX and xAI might merge into one company

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is a senior reporter covering technology, gaming, and more. He joined The Verge in 2019 after nearly two years at Techmeme.

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SpaceX and xAI, which are both led by Elon Musk, are “in discussions to merge” ahead of SpaceX’s IPO that’s planned for later this year, Reuters reports. The merger would help with SpaceX’s plans to launch data centers into space, according to the publication.

The specific timing and value of the potential merger are unclear. SpaceX is considering an IPO date in mid-June, the Financial Times reported this week. xAI and SpaceX didn’t immediately reply to a request for comment from The Verge.

If SpaceX merges with xAI, it would put the rocket company in the same house as Grok, which is under significant scrutiny and even an investigation in the EU over sexualized deepfakes.

Should the deal go through, it would be just the latest transaction between Elon Musk-led companies. Tesla, which also counts Musk as CEO, said this week that it would be investing “approximately” $2 billion investment in xAI. xAI also bought X last year.