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Rani Molla

SpaceX is actually considering a merger with Tesla or xAI: Report

Bloomberg reports that Elon Musk’s SpaceX is considering merging with Musk’s Tesla. Earlier today, Reuters had reported that SpaceX was thinking of potentially merging with xAI ahead of SpaceX’s IPO this year.

From Bloomberg:

The firm has discussed the feasibility of a tie-up between SpaceX and Tesla, an idea that some investors are pushing, the people said, asking not to be identified as the information isn’t public. Separately, they are also exploring a tie-up between SpaceX and xAI ahead of an IPO, some of the people said.

Musk’s companies already have numerous relationships between themselves, including most recently Tesla’s $2 billion investment in xAI. At Tesla’s shareholder meeting last year, shareholders voted to invest in the company but the board didn’t approve the measure due to significant abstentions.

In 2024, SpaceX incurred about $2.4 million in expenses under commercial, licensing, and support agreements with Tesla, and Tesla incurred about $800,000 in expenses for Musk’s use of SpaceX’s jet.

From Bloomberg:

The firm has discussed the feasibility of a tie-up between SpaceX and Tesla, an idea that some investors are pushing, the people said, asking not to be identified as the information isn’t public. Separately, they are also exploring a tie-up between SpaceX and xAI ahead of an IPO, some of the people said.

Musk’s companies already have numerous relationships between themselves, including most recently Tesla’s $2 billion investment in xAI. At Tesla’s shareholder meeting last year, shareholders voted to invest in the company but the board didn’t approve the measure due to significant abstentions.

In 2024, SpaceX incurred about $2.4 million in expenses under commercial, licensing, and support agreements with Tesla, and Tesla incurred about $800,000 in expenses for Musk’s use of SpaceX’s jet.

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SpaceX seals right to buy coding startup Cursor for $60 billion

SpaceX said today it is “working closely together” with fast-growing coding startup Cursor “to create the world’s best coding and knowledge work AI.” The post also said SpaceX would have the right to acquire Cursor later this year or make the startup “pay $10 billion for our work together.” The New York Times, citing people familiar with the matter, previously reported that the companies had agreed to an acquisition.

The news comes as SpaceX prepares for a blockbuster IPO and doubles down on AI, with a growing — if still fully aspirational — focus on space-based data infrastructure and computing.

Last month, when SpaceX hired two senior leaders from Cursor, CEO Elon Musk noted that xAI, which SpaceX acquired earlier this year, “was not built right first time around, so is being rebuilt from the foundations up.”

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