Elon Musk Seemingly Confirms xAI-SpaceX Merger Talks
Synopsis
Musk replied affirmatively in a post on X which implied that the proposed xAI-SpaceX merger is aimed at combining two companies that seek to explore and understand the universe.
- Last week, Reuters reported, citing people familiar with the matter and company filings, that SpaceX is in talks with xAI ahead of the former firm’s initial public offering.
- On Monday, Bloomberg reported that the two companies might announce an agreement as soon as this week.
- SpaceX was most recently valued at $800 billion in an insider share sale, while xAI was valued at $230 billion in November.
Billionaire CEO Elon Musk on Monday seemingly confirmed talks of a merger between his rocket launch company SpaceX and artificial intelligence startup xAI.
Musk replied affirmatively in a post on X which implied that the proposed xAI-SpaceX merger is aimed at combining two companies that seek to explore and understand the universe.
Merger Talks
Last week, Reuters reported, citing people familiar with the matter and company filings, that SpaceX is in talks with xAI ahead of the former firm’s initial public offering. Under the proposed merger, shares of xAI would be exchanged for shares in SpaceX, Reuters reported on Thursday, while adding that some xAI executives could also be given the option to receive cash instead of SpaceX stock.
On Monday, Bloomberg reported that the two companies might announce an agreement as soon as this week, while adding that the talks are ongoing and may drag on further or fall through before a deal is reached.
Bloomberg also reported last week that SpaceX is considering a potential merger with EV giant Tesla Inc. (TSLA) Musk is CEO of both the companies.
SpaceX was most recently valued at $800 billion in an insider share sale. xAI, meanwhile, was valued at $230 billion in November.
The news comes on the heels of reports that SpaceX is contemplating an IPO as early as this year with a valuation over $1 trillion. Last week, Musk’s EV company Tesla also announced an investment of $2 billion in xAI.
How Did Stocktwits Users React?
On Stocktwits, retail sentiment around SPACEX was within the ‘bearish’ territory while sentiment around xAI trended in the ‘bullish’ territory at the time of writing.
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