SpaceX merges with xAI, fueling Tesla takeover speculation

SpaceX has completed a merger with the artificial‑intelligence firm xAI, integrating the startup’s software Grok, its short‑message service X and the "Colossus" super‑computer infrastructure into SpaceX’s operations. The move is aimed at creating orbital compute centers, with SpaceX seeking FCC approval to launch up to a million low‑Earth‑orbit satellites that will provide the massive AI‑training power required.

Analysts and market observers are now debating whether the next step could be a merger between SpaceX and Tesla. RBC, JPMorgan and other firms have raised Tesla’s price target, citing the possibility of a SpaceX‑Tesla combination. Executives from both companies have highlighted existing synergies, and SpaceX COO Gwynne Shotwell said “there are clear synergies between Tesla and SpaceX.” Elon Musk has remained non‑committal while hinting at increased collaboration.