SpaceX in merger talks with other Musk companies ahead of IPO
The Japan TimesJAN 31
Reports: SpaceX in Talks to Merge With xAI Ahead of Planned IPO
Is this a great strategic move or a scheme to subsidize a failing company with public funds?
Above: Elon Musk in Davos, Switzerland on Jan. 22, 2026. Image credit: Lian Yi/Xinhua/Getty Images
The Spin
Narrative A
Combining SpaceX and xAI creates a vertically integrated powerhouse that positions America at the forefront of space-based AI infrastructure. With continuous solar energy powering orbital data centers and Starlink satellites already leveraging machine learning, this merger would deliver the operational efficiencies and capital-raising advantages that make perfect sense for dominating the future of computing and space technology.
Narrative B
This merger looks like an obvious scheme to prop up a failing AI company by attaching it to SpaceX before the IPO, forcing taxpayers and public market investors to subsidize xAI's losses. There's no clear rationale when xAI just raised $20 billion easily from private markets, and the whole thing reeks of using government-dependent SpaceX as a vehicle to extract public funds for Musk's struggling ventures.
Metaculus Prediction
Public Figures
The Controversies
Go Deeper
Articles on this story
© 2026 Improve the News Foundation. All rights reserved.Version 6.18.0
© 2026 Improve the News Foundation.
All rights reserved.
Version 6.18.0