SpaceX is exploring a merger with Tesla and an alternative partnership with xAI, as Elon Musk looks to streamline his business ventures. Discussions are reportedly driven by investor interest in consolidating Musk's companies ahead of a potential IPO.

Walter Isaacson, biographer of Elon Musk, predicts a merger between Tesla and Musk's AI startup xAI, which would enhance Tesla's capabilities in real-world artificial intelligence. This consolidation would leverage extensive datasets from Tesla's autonomous driving and the Optimus robot, aligning with Musk’s vision of integrating his various ventures into a cohesive ecosystem.