Elon Musk's space exploration company, SpaceX, and his artificial intelligence venture, xAI, are currently engaged in discussions regarding a potential merger. This move is reportedly in preparation for an initial public offering (IPO) scheduled for later this year.

According to documents outlining the proposed merger, shares of xAI would be exchanged for shares of SpaceX. To facilitate this transaction, two separate entities have already been established in the state of Nevada.