Will SpaceX swallow up xAI? A major merger of Musk's companies is in the works.

Elon Musk plans to merge his companies SpaceX and xAI ahead of their planned IPO. This was reported exclusively by Reuters.

The merger would bring SpaceX rockets, Starlink satellites, the X social network, and the Grok AI chatbot under one roof. The goal is to strengthen Musk's position in the race for dominance in the field of artificial intelligence. SpaceX is already valued at $800 billion, while xAI was valued at $230 billion in November.

After the merger, xAI shares would be exchanged for shares in SpaceX. Musk is also launching an ambitious project to build solar-powered AI data centers in space.

The merger could also increase the chances of large contracts with the Pentagon, which is already planning to integrate Grok into military systems. SpaceX is expected to go public later this year.

(reuters, mja)