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SpaceX and Tesla explore potential merger as Musk bets on physical AI and computing power

Bloomberg reported on October 27 that SpaceX and Tesla are exploring a potential merger through a special committee; if the deal goes through, it would create a cross-aerospace and consumer business entity with a combined market value exceeding 3 trillion USD. The two companies have already intersected on the Terafab chip project, with plans to produce the first test chip in May to June 2027 and begin mass production in the third quarter of 2028; the chips would serve Tesla vehicles, the Optimus robot, and SpaceX orbital computing facilities.

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