Overview
- Reuters reports the companies are discussing a merger before a SpaceX listing this year, with no signed agreement and details such as timing and structure still unsettled.
- Public records show two merger entities formed in Nevada on Jan. 21, including one listing SpaceX CFO Bret Johnsen, with TechCrunch identifying them as K2 Merger Sub Inc. and K2 Merger Sub 2 LLC.
- Under the proposal, xAI shares would be exchanged for SpaceX stock, and some xAI executives could opt to receive cash, according to a person briefed on the talks.
- Bloomberg reporting indicates SpaceX is also evaluating a tie-up with Tesla as it prepares for an IPO that banks are lining up for, with recent valuations placing SpaceX near $800 billion and xAI around $230 billion.
- A key rationale cited is building space-based AI infrastructure leveraging Starlink and launch capacity, with added national-security relevance given xAI’s Pentagon work, including a contract reportedly worth up to $200 million.