SpaceX and xAI are reportedly in merger talks ahead of a planned IPO.

Reports say SpaceX and xAI are discussing a merger that would combine SpaceX's rockets, Starlink, X and xAI's Grok chatbot, and Nevada filings show two entities were created on Jan. 21 linked to the potential transaction.

Reports indicate that SpaceX and xAI are in discussions about a possible merger ahead of SpaceX's planned initial public offering later this year. The proposed combination is reported to bring together SpaceX's rockets and Starlink satellites, the X social platform and xAI's Grok chatbot, according to people briefed on the matter and recent corporate filings seen by Reuters. Corporate filings in Nevada show two entities were created on January 21, with one listing SpaceX and CFO Bret Johnsen as managing members and the other listing Johnsen as the sole officer. A person familiar with the talks said some xAI executives could be offered cash instead of SpaceX stock, and that no final agreement has been signed and timing remains fluid. Key facts: - Reports say a merger would combine SpaceX, Starlink, X and the Grok AI chatbot under one entity. - Two Nevada entities were formed on Jan. 21; filings list SpaceX and Bret Johnsen in management roles. - The reported plan would exchange xAI shares for SpaceX shares, with some executives possibly able to take cash instead. - No final agreement has been reached and the value, timing and structure of any transaction remain undetermined. - Previous reports cited SpaceX being last valued around US$800 billion in an insider sale and xAI being valued at US$230 billion in November; SpaceX has also lined up banks for a possible IPO this year. Summary: The reported merger would bring multiple Musk-controlled businesses together, aligning space, satellite and AI assets. Undetermined at this time.