Two Elon Musk companies are reportedly planning to merge. On Thursday, Reuters reported that SpaceX and xAI are holding merger talks ahead of the planned IPO. Part of their plan is to launch AI data centers into space (but unfortunately, only as far as Earth’s orbit).

Last week, it was reported that Musk plans to take SpaceX public although once said that this will not happen until the company has a presence on Mars. Now, the IPO could happen as early as this year. xAI shares will reportedly be exchanged for SpaceX shares under the merger. Reuters reported that two entities were established in Nevada on January 21 to facilitate the agreement.

If the idea of ​​Musk’s two companies becoming one sounds familiar, that’s because it happened less than a year ago. In March 2025, xAI bought X, putting Grok (known as nonconsensual “undressing” images) and X (famous for being a far right hellscape) simultaneously under an unholy roof.

The latest idea promoted by Musk is blasting AI data centers into space. At last week’s gathering of the rich and powerful in Davos, Switzerland, he said, “The lowest-cost place to put AI is in space. And that will be true within two years, maybe three at the latest.” The idea is that data centers in orbit can use solar power and reduce cooling costs. However, industry analysts and executives consider it a risky bet, questioning whether the savings will warrant substantial investment. If or when the The AI ​​bubble has burstthe plan could go up in flames – if not literally, then figuratively.