On January 30th, individuals with inside knowledge of the situation revealed that SpaceX, the company founded by Musk, is currently in the midst of merger negotiations with xAI. The two parties aim to finalize the merger prior to SpaceX going public. This strategic move will see the seamless integration of SpaceX's rocket technology, its extensive Starlink satellite network, the popular X social media platform, and the innovative Grok AI chatbot.

Such an integration is poised to inject fresh vitality into SpaceX's ambitious plan of launching data centers into orbit. In the fiercely competitive AI landscape, Musk is determined to seize the initiative and gain a competitive edge. As per the proposed merger framework, xAI shares are set to be converted into SpaceX shares. Additionally, sources disclosed that two entities have been set up in Nevada to streamline and facilitate the smooth execution of this transaction.