'Elon Thinking Big,' Says Gene Munster As SpaceX Explores xAI–Tesla Tie-Up Ahead Of $1.5 Trillion IPO
Elon Musk has once again fueled merger speculation after reports said SpaceX is exploring a potential tie-up involving xAI and Tesla Inc.(NASDAQ:TSLA) as it prepares for what could be one of the largest IPOs in history.
SpaceX, xAI And Tesla: Merger Talk Gains Momentum
SpaceX has reportedly been holding internal discussions around a possible merger involving Tesla and xAI.
The space exploration company is reportedly targeting an IPO as early as June at a valuation of around $1.5 trillion, a move that would instantly make it one of the most valuable publicly traded firms in the world.
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Gene Munster Breaks Down The Odds
On Thursday, Deepwater Asset Management's managing partner Gene Munster weighed in on X, calling the situation a classic example of "Elon thinking big."
Munster outlined his view of how the scenario could play out over the next three years, assigning a 45% chance that Tesla acquires xAI, a 35% chance SpaceX buys xAI and a 20% probability that xAI remains independent.
"My take: Investors would likely approve the deal (either SpaceX or Tesla buying xAI) because it’s Elon thinking big, future versions of Colossus belong in space," Munster wrote.
Reuters reports SpaceX is in talks to merge with xAI.
Over the next three years, I put the odds at:
* 35% that SpaceX buys xAI
* 45% Tesla buys xAI
* 20% xAI remains standalone.SpaceX and Tesla have each invested $2B into xAI.
My take: Investors would likely approve the…
Both SpaceX and Tesla have already invested $2 billion each into xAI.
Why AI Is Central To Musk's Strategy
In a separate post, Munster said Musk's companies "will always play nice with each other," outlining how each could benefit from xAI.
SpaceX, he said, wants xAI to power datacenters "in the sky," while Tesla would leverage Grok, xAI's chatbot, for Full Self-Driving software and the Optimus humanoid robot program.
"If SpaceX buys xAI, Tesla will still get access to Grok," Munster added.
Elon's company's will always play nice with each other.
* SpaceX wants xAI for the datacenter in the sky.
* Tesla wants xAI for Grok for FSD and Optimus.
If SpaceX buys xAI, Tesla will still get access to Grok. https://t.co/UgvFkEoaTJ
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