00:00Sources tell us that SpaceX and Tesla have considered some sort of merger between those two.
00:07And you see Tesla push higher in the after hours after we broke that story.
00:11They've also looked at a merger or combination between SpaceX and XAI.
00:16My understanding is that there is a group of investors that are pushing very much on the Tesla idea, but nothing is final.
00:23You know, as we all know, the background context is that SpaceX is making preparations for an IPO at some point in the middle of this year.
00:34So that's what's being looked at. And, you know, we don't know the full extent of the mechanisms, the structures that are being proposed.
00:41What we do know is that, you know, based on what we're told by sources, there will be some financing considerations for both potential combinations, which are distinct.
00:51And that there will be an eye on how sovereign wealth funds, particularly those in the Gulf, can help facilitate this.
01:00Because really the build out of artificial intelligence investments that Elon Musk is thinking in terms of all of his companies into artificial intelligence is huge, isn't it?
01:10What did we hear this week? Twenty billion dollars or so?
01:13Yes. Tesla's capital expenditure commitment for 2026 is 20 billion dollars.
01:17It excludes some of the long term projects that Musk outlined on its own fab, which you can read my reporting on and around solar.
01:25But there has always been a historic linkage between the different Elon Musk companies.
01:30There are engineers that have worked on both Tesla projects and SpaceX projects, particularly on materials.
01:36There is a world where, you know, the motivation for SpaceX IPO is for space based data center.
01:41Those designs, though we haven't seen them, will need solar arrays.
01:45Tesla is moving deeper into solar.
01:46Tesla, XAI is a customer of Tesla.
01:49And now, as of last night, we know Tesla is an investor in XAI.
01:53It bought two billion dollars of preferred equity.
01:55So we're trying to unpick this.
01:57But the latest, the story we broke is that both have been looked at.
02:00A potential SpaceX and Tesla combination.
02:04And as Reuters reported before us, a SpaceX and XAI combination of some sort.
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