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two Elon Musk’s company Reportedly exploring potential merger that could allow his Rocket companies to space exploration technologies corp. with his artificial intelligence startup xAI.
Two regulatory filings seen by Reuters showed the deal was being discussed ahead of a planned public offering in June.
The combined entity will integrate SpaceX’s reusable rockets, Starlink Internet satellite, X platform and artificial intelligence chatbot Grok. Musk could also realize his ambition to build an artificial intelligence data center in space, which he claims will be achieved within two to three years.
Speaking at the World Economic Forum in Davos last week, Musk said artificial intelligence in space would be more efficient than artificial intelligence on the ground.
“When you use solar power in space, you’re five times more efficient than terrestrial solar power, maybe even more,” he said.
“It’s always sunny here, so there’s no day-night cycle, seasonality or weather, and you get about 30 percent more power in space because there’s no attenuation of power in the atmosphere. The net effect is that any given solar panel can produce five times more power in space than on the ground.”
Considering that artificial intelligence is developing rapidly and unpredictably, building data centers in space is a risky proposition. Analysts and executives question whether the expected reductions in energy consumption are worth the cost of customizing the system for space.
As the world’s richest man, Musk is not only the head of SpaceX and xAI, but also runs Teslatunneling company The Boring Co and neurotechnology company Neuralink.
SpaceX is also considering a merger with Musk’s electric car maker Tesla, Bloomberg reported.
“I think (xAI) will probably end up being one of two parties,” said Gene Munster, managing partner of Tesla shareholder and xAI investor Deepwater Asset Management.
“What’s important to Elon is having a big vision, and he had that vision early on.”
Late Thursday, forecasting center Polymarket put the probability of a SpaceX-xAI merger at 48% by mid-year, and the probability of a Tesla-xAI merger at 16%.
Musk, SpaceX, xAI and Tesla did not respond to requests for comment. Tesla shares rose 3% in after-hours trading.
SpaceX’s initial public offering (IPO) later this year could be the largest in history, with a potential valuation of more than $1 trillion.
Additional reporting from agencies.