Elon Musk’s companies, SpaceX and Tesla, have begun exploring a merger that would create a $3.5 trillion corporate giant spanning key sectors of cutting-edge technology. Musk, who cautioned that shareholders could reject the proposal, argued that combining the companies would allow them to deepen cooperation on chip design, robotics, software, and other technologies; both firms’ share prices rose following the announcement.
In part, the deal reflects the seemingly relentless growth of Big Tech, which already represents a historically disproportionate share of US stock markets. But such a tie-up also has its own strong logic, one early SpaceX investor told Bloomberg: “Combined, it would be the only company owning the full physical-AI stack … No competitor has an analog.”
— Prashant Rao