On January 30th, reports initially surfaced suggesting that SpaceX and xAI were in talks about a potential merger. However, the most recent updates reveal that SpaceX is now evaluating two distinct paths. According to insiders with knowledge of the situation, SpaceX is considering a merger with Tesla, a move that could significantly strengthen Musk's business empire. This concept has garnered support from some investors. Moreover, ahead of a potential Initial Public Offering (IPO), SpaceX is also exploring the possibility of merging with xAI.

Sources have indicated that these merger proposals could pique the interest of infrastructure funds as well as sovereign investors from the Middle East, and would necessitate substantial financial backing. Nevertheless, SpaceX has not yet reached a definitive decision. The specifics of these potential deals are subject to change, and there remains a possibility that the companies may opt to maintain their independent operations. Notably, Tesla's stock price experienced a brief surge of 4.5% during after-hours trading on Thursday.