In a groundbreaking new report from Reuters, SpaceX is reportedly discussing merger possibilities with xAI ahead of the space exploration company’s plans to IPO later this year, in what would be a blockbuster move.

The outlet said it would combine rockets and Starlink satellites, as well as the X social media platform and AI project Grok under one roof. The report cites “a person briefed on the matter and two recent company filings seen by Reuters.”

Musk, nor SpaceX or xAI, have commented on the report, so, as of now, it is unconfirmed.

With that being said, the proposed merger would bring shares of xAI in exchange for shares of SpaceX. Both companies were registered in Nevada to expedite the transaction, according to the report.

Tesla announces massive investment into xAI

On January 21, both entities were registered in Nevada. The report continues:

“One of them, a limited liability company, lists SpaceX ​and Bret Johnsen, the company’s chief financial officer, as managing members, while the other lists Johnsen as the company’s only officer, the filings show.”

The source also stated that some xAI executives could be given the option to receive cash in lieu of SpaceX stock. No agreement has been reached, nothing has been signed, and the timing and structure, as well as other important details, have not been finalized.

SpaceX is valued at $800 billion and is the most valuable privately held company, while xAI is valued at $230 billion as of November. SpaceX could be going public later this year, as Musk has said as recently as December that the company would offer its stock publicly.

SpaceX IPO is coming, CEO Elon Musk confirms

The plans could help move along plans for large-scale data centers in space, something Musk has discussed on several occasions over the past few months.

At the World Economic Forum last week, Musk said:

“It’s a no-brainer for building solar-powered AI data centers in space, because as I mentioned, it’s also very cold in space. The net effect is that the lowest cost place to put AI will be space and that will be true within two to three years, three at the latest.”

He also said on X that “the most important thing in the next 3-4 years is data centers in space.”

If the report is true and the two companies end up coming together, it would not be the first time Musk’s companies have ended up coming together. He used Tesla stock to purchase SolarCity back in 2016. Last year, X became part of xAI in a share swap.

Tesla has announced it has hit a major milestone with Full Self-Driving subscriptions, shortly after it said it would exclusively offer the suite without the option to purchase it outright.

Tesla announced on Wednesday during its Q4 Earnings Call for 2025 that it had officially eclipsed the one million subscription mark for its Full Self-Driving suite. This represented a 38 percent increase year-over-year.

This is up from the roughly 800,000 active subscriptions it reported last year. The company has seen significant increases in FSD adoption over the past few years, as in 2021, it reported just 400,000. In 2022, it was up to 500,000 and, one year later, it had eclipsed 600,000.

NEWS: For the first time, Tesla has revealed how many people are subscribed or have purchased FSD (Supervised).

Active FSD Subscriptions:
• 2025: 1.1 million
• 2024: 800K
• 2023: 600K
• 2022: 500K
• 2021: 400K pic.twitter.com/KVtnyANWcs

— Sawyer Merritt (@SawyerMerritt) January 28, 2026

In mid-January, CEO Elon Musk announced that the company would transition away from giving the option to purchase the Full Self-Driving suite outright, opting for the subscription program exclusively.

Musk said on X:

“Tesla will stop selling FSD after Feb 14. FSD will only be available as a monthly subscription thereafter.”

The move intends to streamline the Full Self-Driving purchase option, and gives Tesla more control over its revenue, and closes off the ability to buy it outright for a bargain when Musk has said its value could be close to $100,000 when it reaches full autonomy.

It also caters to Musk’s newest compensation package. One tranche requires Tesla to achieve 10 million active FSD subscriptions, and now that it has reached one million, it is already seeing some growth.

The strategy that Tesla will use to achieve this lofty goal is still under wraps. The most ideal solution would be to offer a less expensive version of the suite, which is not likely considering the company is increasing its capabilities, and it is becoming more robust.

Tesla is shifting FSD to a subscription-only model, confirms Elon Musk

Currently, Tesla’s FSD subscription price is $99 per month, but Musk said this price will increase, which seems counterintuitive to its goal of increasing the take rate. With that being said, it will be interesting to see what Tesla does to navigate growth while offering a robust FSD suite.

Elon Musk’s tunneling startup, The Boring Company, has welcomed its newest Vegas Loop station at the Fontainebleau Las Vegas.

The Fontainebleau is the latest resort on the Las Vegas Strip to embrace the tunneling startup’s underground transportation system.

Fontainebleau Loop station

The new Vegas Loop station is located on level V-1 of the Fontainebleau’s south valet area, as noted in a report from the Las Vegas Review-Journal. According to the resort, guests will be able to travel free of charge to the stations serving the Las Vegas Convention Center, as well as to Loop stations in Encore and Westgate.

The Fontainebleau station connects to the Riviera Station, which is located in the northwest parking lot of the convention center’s West Hall. From there, passengers will be able to access the greater Vegas Loop.

Vegas Loop expansion

In December, The Boring Company began offering Vegas Loop rides to and from Harry Reid International Airport. Those trips include a limited above-ground segment, following approval from the Nevada Transportation Authority to allow surface street travel tied to Loop operations.

Under the approval, airport rides are limited to no more than four miles of surface street travel, and each trip must include a tunnel segment. The Vegas Loop currently includes more than 10 miles of tunnels. From this number, about four miles of tunnels are operational.

The Boring Company President Steve Davis previously told the Review-Journal that the University Center Loop segment, which is currently under construction, is expected to open in the first quarter of 2026. That extension would allow Loop vehicles to travel beneath Paradise Road between the convention center and the airport, with a planned station located just north of Tropicana Avenue.