Elon Musk plans to combine his space venture with his artificial intelligence startup in a pre-IPO merger that would create a single company valued at $1.25 trillion, according to a memo and people familiar with the matter. The proposal anticipates a share price of roughly $527 apiece.
The arrangement would fold Musk’s rocket business and AI operations into one entity prior to taking the combined company public later this year, as part of preparations for a major offering. The corporate package is intended to unify Musk’s rockets, Starlink satellites, the X social media platform and the Grok AI chatbot under a single ownership structure.
Company representatives did not immediately respond to requests for comment. The deal was outlined in a memo that described the terms of the proposed merger and the expected pricing for the public listing.
Valuation figures cited in the memo and related reports place the combined enterprise at $1.25 trillion. Separately, the space company has signaled plans to pursue a public listing with a valuation likely to exceed $1 trillion. In the private market, that space firm was priced at $800 billion in a recent private share sale. The AI startup had been valued at $230 billion in November, according to earlier reporting.
The discussions to merge precede a blockbuster initial public offering expected to occur later in the year. Bringing the various businesses together would consolidate significant technology and communications assets - including orbital satellite operations and social media and AI services - into a single publicly traded vehicle.
Key details such as the final timing of the IPO and any regulatory or execution steps required were not specified in the memo excerpt available to those familiar with the matter. The proposal remains subject to standard corporate processes and disclosures as the companies move toward a public listing.
Summary
- Elon Musk intends to merge his space company with his AI startup ahead of an initial public offering, creating a combined company valued at $1.25 trillion.
- The proposed share price for the combined company is about $527 per share, as described in a memo and by people familiar with the plan.
- The combined entity would include rockets, Starlink satellites, the X social media platform and the Grok AI chatbot; both companies did not immediately reply to requests for comment.