Elon Musk’s two companies are reportedly planning to merge. on thursday, reuters SpaceX and XAI are reported to be in talks to merge ahead of a planned IPO. Part of their plan is to launch AI data centers into space (but unfortunately, only up to Earth orbit).
Last week, it was reported that Musk plans to take SpaceX public, despite once saying it would not happen until the company had a presence on Mars. Now, the IPO may come as early as this year. XAI shares will reportedly be exchanged for SpaceX shares as part of the merger. reuters Two entities were set up in Nevada on January 21 to facilitate the deal, the report said.
If the idea of two Musk companies merging into one sounds familiar, that’s because it happened less than a year ago. In March 2025, xAI purchased X, Grok (known for non-consensual “nude” images) and
The latest idea Musk is proposing is to set up AI data centers in space. “The lowest-cost place to put AI will be in space. And that will come true within two years, maybe as soon as three years,” he told a gathering of the rich and powerful in Davos, Switzerland, last week. The idea is that data centers in orbit could harness solar power and reduce cooling costs. However, industry analysts and executives consider it a risky bet, and question whether the savings will require large-scale investment. If or when the AI bubble bursts, plans could go up in flames – if not literally, then figuratively.
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