Three of Elon Musk’s companies – SpaceX, xAI, and Tesla – are playing for a potential merger. While the talks appear to be early, according to reports from Bloomberg and Reuters, this could eventually lead to at least one company folding in SpaceX.

Two scenarios have been hashed out. In one, SpaceX and Tesla will merge, per Bloombergciting unnamed insiders. Alternatively, SpaceX and aXI (which already owns Musk’s social media platform X) will merge.

According to reported by Reutersa merger between SpaceX and xAI could happen before the planned SpaceX IPO this year. It will bring products like the Grok chatbot, X platform, Starlink satellites, and SpaceX rockets together under one corporation.

Company representatives from SpaceX and xAI have not discussed this possibility publicly. However, recent filings show that two new corporate entities were formed in Nevada on January 21, called K2 Merger Sub Inc. and K2 Merger Sub 2 LLC. This suggests that Musk is keeping all options open.

There are advantages to either scenario. The merger of the companies SpaceX and xAI could allow xAI to put its data centers in space, something Musk said he wanted to. A SpaceX-Tesla tie-up could also align the EV energy storage business with the space idea.

And both options – as well as a combination of all three companies – are consistent with Musk’s comments and recent actions to consolidate, or at least share resources between them. Last year, SpaceX agreed to invest $2 billion in xAI, according to The Wall Street Journaland earlier this week, Tesla also revealed (also led by Musk), invested $2 billion to start AI.

Last year, xAI bought X in a deal Musk said valued xAI at $80 billion and X at $33 billion. SpaceX, which has been in existence since 2002, has reportedly launched a second sale valuing it at $800 billion, making it the most valuable private company in the US

A recent report in the Financial Times indicated that Musk wants to take over SpaceX public in June. Then again, Musk’s big plans rarely happens on time.

This article was originally published at 10:30 am PT. It has since been updated with new information about Tesla.