SpaceX to merge with xAI ahead of planned mega IPO

People familiar with the matter say Elon Musk plans to merge SpaceX with xAI; the memo reportedly values the combined company at about $1.25 trillion and suggests a share price near $527.

Elon Musk plans to merge SpaceX with his artificial intelligence firm xAI, according to people familiar with the matter. The merger was reported in a memo and has not been publicly confirmed by company representatives. Bloomberg reported the combined company could be priced near $527 per share with a valuation around $1.25 trillion. The move follows earlier integrations among Musk's businesses, including the purchase and renaming of Twitter to X and xAI's tie-up with that platform. Key details: - The memo announcing the merger was reported by people who asked not to be identified. - The combined company was reported to be priced around $527 a share and valued near $1.25 trillion. - Bloomberg has reported SpaceX is planning an initial public offering that could raise as much as $50 billion and had earlier valuation estimates near $800 billion. - xAI raised funds at an estimated $230 billion valuation in January and operates the Grok chatbot. - Bloomberg reported xAI was burning about $1 billion a month to support its operations and ambitions. - SpaceX has filed for permission to launch as many as a million satellites as part of a plan to place data-center capability in orbit, according to a regulatory filing. Summary: The reported merger would combine two large private companies and further intertwine Musk's ventures by bringing together capital, talent and access to computing resources. Undetermined at this time.