"SpaceX and xAI combine...Tesla next? In our view there is a growing chance that Tesla will eventually be merged in some form into SpaceX/xAI over time. The view is this growing AI ecosystem will focus on Space and Earth together.....and Musk will look to combine forces 🏆🍿🐂♟️🔥- Dan Ives (@DivesTech) February 3, 2026"
"Musk stated that the merger creates a vertically integrated platform that combines AI, rockets, satellite internet, communications, and real-time data. In a post on SpaceX's official website, Elon Musk added that the combined company is aimed at enabling space-based AI compute, stating that within two to three years, space could become the lowest-cost environment for generating AI processing power. The transaction reportedly values the combined SpaceX-xAI entity at roughly $1.25 trillion."
Dan Ives of Wedbush Securities stated that the odds are growing that Tesla could eventually be merged in some form into SpaceX/xAI within the next 12 to 18 months. Elon Musk confirmed that SpaceX has merged with xAI, creating a vertically integrated platform that combines AI, rockets, satellite internet, communications, and real-time data. The combined company aims to enable space-based AI compute, with space potentially becoming the lowest-cost environment for AI processing within two to three years. The combined SpaceX-xAI entity is reportedly valued at roughly $1.25 trillion, and Tesla recently invested $2 billion in xAI. Notable complications and integration or regulatory challenges remain.
Read at TESLARATI
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