Musk's empire integration? Bloomberg broke the news: SpaceX may merge with Tesla or xAI to go public

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Musk evaluates the integration of SpaceX, Tesla, and xAI in an attempt to build space computing and AI infrastructure, and rumors of mergers and acquisitions and listings have attracted great attention from the market.

According to Bloomberg, Elon Musk is evaluating the possibility of integrating his business empire, considering merging space giant SpaceX with electric vehicle leader Tesla, or choosing to merge SpaceX with artificial intelligence company xAI. This move reflects Musk’s attempt to combine space communications, energy storage, and AI computing technology through vertical integration to strengthen his global technological competitiveness. Although there is no final decision yet and no official response from the companies involved, the newly established legal entity in Nevada has raised strong expectations for mergers and acquisitions.

Musk’s strategic integration: building an AI computing system across the stars

According to people familiar with the matter, Musk is considering merging SpaceX with Tesla, or choosing to merge SpaceX with artificial intelligence company xAI.

The core of Musk’s vision is to deploy computing centers in space. If SpaceX and xAI merge, xAI will be able to directly leverage SpaceX’s satellite network in orbit to provide powerful computing power and overcome space and cooling constraints in ground data centers. Tesla’s energy storage technology can provide solar power storage solutions for these space data centers. If this technological symbiosis (Synergy) can be implemented, it will give Musk an absolute competitive advantage in the field of AI infrastructure.

New corporate entity headed by CFO emerges, TSLA surges 4.5% at one point

Tesla currently has a market capitalization of about $1.4 trillion, while SpaceX, which plans to conduct an IPO, is also valued at $1.5 trillion. Such a huge merger requires large-scale financing support. The report pointed out that Middle Eastern sovereign wealth funds and infrastructure funds have shown strong interest in this. In addition, Nevada has recently seen the emergence of two new corporate entities with “Merger Sub” in their names, headed by SpaceX CFO Bret Johnsen, which is often regarded as a preliminary preparation for mergers and acquisitions in legal procedures.

Reuters previously reported the news of a possible merger between SpaceX and xAI. Reuters quoted people familiar with the matter as saying that xAI’s shares will be exchanged for SpaceX shares.

Encouraged by this news, Tesla shares rose 4.5% at one point in after-hours trading on Thursday. The market reacted positively, mainly because investors believed that SpaceX’s growth potential and stable contract revenue could provide valuation support for Tesla, which was affected by competitive pressures. However, corporate integration also faces significant challenges, including how to handle complex cross-shareholding relationships and potential incentives for management to choose to receive cash instead of equity during the merger between SpaceX and xAI.

Musk’s long-term vision: from Earth’s energy to Mars colonization

In addition to technology integration, Musk also discussed using SpaceX’s Starship to transport Tesla’s Optimus humanoid robot to the moon and even Mars. This suggests that its potential merger plans are not just for financial optimization but also for a blueprint for long-term transplanetary expansion. While legal and technical hurdles remain, this idea of combining hardware manufacturing, energy transition, and cutting-edge AI software has redefined the boundaries of the future technology industry.

SpaceX is considering a June listing, and Robinhood is vying for a key role

According to people familiar with the matter, SpaceX is considering going public in June, coinciding with Musk’s birthday, and may seek to raise up to $500 billion. This will make it the largest IPO ever. Bank of America, Goldman Sachs, JPMorgan Chase, and Morgan Stanley are expected to play significant roles.

Robinhood, an emerging broker loved by young people, is vying to play a key role in SpaceX’s blockbuster IPO.

• This article is reprinted with permission from: “Chain News”
• Original title: “Musk’s Empire Integration: Will SpaceX Merge with Tesla or xAI to List?” 》
• Original author: Florence