Musk Accelerates Business Integration as SpaceX and xAI Weigh Merger

Elon Musk is advancing talks to merge SpaceX and his AI startup xAI, according to people familiar with the matter, signaling a strategic push to consolidate his private empire. The companies have briefed select investors on the proposal and could announce a deal as early as the week of February 2, 2026. Discussions remain ongoing and may still extend or collapse, the sources cautioned. Representatives for SpaceX and xAI did not immediately respond to requests for comment outside regular business hours. A merger would combine two of the world’s largest private companies: SpaceX, valued at approximately $800 billion in late 2025, and xAI, which reached a $200 billion valuation in September 2025. The move would pair xAI’s capital-intensive AI development with SpaceX’s mature launch and satellite infrastructure. SpaceX recently filed to deploy up to 1 million satellites, a key enabler for Musk’s vision of space-based data centers to support advanced AI computing.