SpaceX/xAI merger sparks Wall Street discussion: profits, challenges, and integration prospects with Tesla, Inc.

SpaceX announced the acquisition of Tesla, Inc. (TSLA.US) founder Elon Musk's artificial intelligence company xAI, sparking heated discussions among Wall Street analysts. Market opinions are clearly divided, with on one hand, the combination of AI and space being seen as an imaginatively growth story; on the other hand, this deal may also change SpaceX's investment profile as a "pure space target" and bring about complex engineering and regulatory challenges. Dhierin Bechai, head of the aerospace research organization The Aerospace Forum, pointed out that the combination of SpaceX and xAI provides investors with the allure of the "AI+Space" dual hot track, but it may also make some investors who only want to bet on the space industry feel concerned, as SpaceX's future positioning would no longer be singular if it goes public. Musk emphasized that the future of AI is in space, with the key being "infinite accessibility" from CECEP Solar Energy. He plans to establish a space data center and has a grand vision: if launching a million tons of satellites each year, each ton providing 100 kilowatts of computing power, could add 100 gigawatts of AI computing power, with the long-term potential of launching 1 terawatt of computing power per year. He predicts that within the next 2 to 3 years, space could become the lowest-cost path for generating AI computing power. Investment bank Wedbush analyzed that this merger may become Musk's largest integration to date in his business empire, with the merged company's IPO valuation potentially reaching up to $1.25 trillion, with xAI valued at around $250 billion. The deal structure shows that xAI shares will be converted into SpaceX stock proportionally, and employees can also choose to cash out. At the same time, the role of Tesla, Inc. has also become a focus of market attention. Tesla, Inc. announced last week an investment of about $20 billion in xAI. Wedbush believes that there is a possibility for Tesla, Inc. to be merged in some form into SpaceX/xAI ecosystem in the future, especially in the context of accelerating strategic advancements in autonomous driving and Siasun Robot & Automation, Musk may gradually integrate key technologies and resources of his AI empire. Analysis firm Seeking Alpha further pointed out that Tesla, Inc. is evolving from a traditional car manufacturer into a "physical AI provider", with its energy storage business potentially becoming a crucial link supporting orbital data centers, and the layout of Optimus Siasun Robot & Automation would make Tesla, Inc. a key industrial pillar of Musk's land and space infrastructure. Analysts generally agree that the narrative of "orbital computing power" is reigniting interest in the space sector and adding a clearer AI-driven growth logic to SpaceX's future listing on the public market. With the increasing demand for AI computing power and energy constraints, space data centers may become one of the focal points of the next stage of tech competition.