SpaceX is reportedly engaged in advanced discussions regarding a potential combination with xAI, according to recent reports. The talks between the aerospace company and the artificial intelligence firm are described as being in an advanced stage.

Corporate Development Activity

The reported discussions between SpaceX and xAI represent significant corporate development activity. The characterization of the talks as "advanced" suggests that negotiations have progressed beyond preliminary stages.

Companies Involved

The potential combination involves SpaceX, the aerospace manufacturer and space transportation company, and xAI, which operates in the artificial intelligence sector. Both companies represent significant players in their respective technology domains.

The reported advanced nature of these discussions indicates ongoing corporate strategic activities, though specific details regarding the structure or timeline of any potential combination have not been disclosed in the available information.

SpaceX is working toward making its Falcon 9 rockets fully reusable, which could dramatically reduce satellite launch costs by a factor of 100, according to Elon Musk. Speaking at The World Economic Forum's annual gathering in Davos, Switzerland, the SpaceX founder outlined the company's progress and future ambitions for cost reduction in space launches.

Current Reusability Achievements

SpaceX has made significant strides in rocket reusability since launching the Falcon 9 in 2010. The launch vehicle made its maiden commercial crewed flight to low earth orbit in 2020. The company's most notable breakthrough has been developing reusable boosters, which reduced launch costs to $62 million in 2018 - a twentieth of NASA's previous costs.

Musk explained that while SpaceX has successfully landed the booster stage over 500 times, the company still discards the upper stage. "The upper stage burns up on reentry and the cost of that is equivalent to a small to medium sized jet," he noted during his Davos presentation.

Market Position and Cost Comparison

SpaceX has established itself as the most cost-effective option in the satellite launch market. The price of heavy launches to low-Earth orbit has fallen dramatically from $65,000 per kilogram to $1,500 per kilogram by 2021, according to McKinsey estimates.

The Indian Space Research Organisation, recognized as a significant competitor, estimates launching costs for its polar satellite launch vehicle at approximately $4,500-5,000 per kilogram. China-based CAS Space's launches cost about $6,900 per kilogram, as reported by Yicai Global in October 2025.

Industry Growth Projections

The declining cost of satellite launches is expected to fuel substantial growth in the space economy. Goldman Sachs projects the satellite market will expand significantly from current levels to $108 billion by 2035, representing growth from the existing $15 billion market.

The same Goldman Sachs report estimates that approximately 70,000 LEO satellites are expected to launch over the next five years, indicating robust demand for cost-effective launch services. This projected satellite deployment surge underscores the importance of SpaceX's continued cost reduction efforts and the potential impact of achieving full rocket reusability.