Musk to Merge SpaceX and xAI Ahead of Planned IPO Later This Year

Elon Musk is consolidating his space exploration company SpaceX and artificial intelligence startup xAI into a single entity ahead of a planned initial public offering later in 2026, according to internal communications reviewed by AP. The combined company aims to leverage synergies between orbital infrastructure and AI development, with the IPO expected to be one of the largest tech listings since 2021. SpaceX, valued at over $250 billion in private markets, has delayed going public for years, while xAI, founded in 2023, has rapidly scaled its compute and talent investments. Musk cited "strategic alignment" as the rationale for the merger, though regulatory and antitrust reviews are anticipated.