SpaceX-Tesla merger chatter reignites as Musk pushes rocket company towards Nasdaq
Speculation about a potential merger between SpaceX and Tesla has resurfaced as both companies increasingly focus on AI. SpaceX's capital expenditures are heavily tied to AI, while Tesla plans to significantly increase its own investments in the technology. Industry experts acknowledge the complexity of such a merger but note the growing interest among tech enthusiasts.
- ▪SpaceX's capital expenditures in the first quarter were largely focused on AI, amounting to over $10 billion.
- ▪Tesla's capital expenditures are expected to triple this year, exceeding $25 billion.
- ▪Elon Musk is preparing to promote SpaceX to Wall Street as it seeks to expand its business ventures.
- ▪A potential merger between SpaceX and Tesla has garnered attention but would be complex to execute.
- ▪SpaceX is also in talks to acquire AI coding startup Cursor for $60 billion.
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While a company launching rockets based on contracts with the government may not seem to have a lot in common with an EV manufacturer, both of the businesses are increasingly focused on AI and the talent and computing resources necessary to build AI infrastructure and services. More than three-quarters of SpaceX's $10.1 billion in capital expenditures in the first quarter were tied to AI, and Tesla said in its latest earnings report that capex will roughly triple this year, topping $25 billion. "Tesla has to run powerful AI systems inside a moving vehicle with tight limits on power, cooling, latency, reliability and cost," said Tomasz Tunguz, a former engineer who's now a venture capitalist at Theory Ventures.
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