SpaceX’s AI business looks more like a computing rental operation than a model maker: an analyst at DA Davidson says most of its AI revenue likely comes from renting compute to Anthropic and Google. Tesla, meanwhile, reported a second straight quarter of falling profits. The firms already share projects, including the planned Terafab chip venture and Macrohard, though SpaceX’s filing says key terms are not finalised. Musk holds more than half the votes at SpaceX, so a stock deal with SpaceX as buyer would give him control of Tesla too. Bloomberg reports a push to announce a deal by the first half of 2027.
Why it matters
A combined company would end conflicts between Musk’s firms over scarce Nvidia chips and staff, and could make it easier to raise money for AI infrastructure. But it would also concentrate control, dilute SpaceX holders and remove the operational milestones in Musk’s Tesla pay package. Texas law makes shareholder lawsuits hard, so disclosure rules and regulators are the main checks.
Original source
Sure, let’s smoosh SpaceX and Tesla together, who cares
The Verge
theverge.com
Summary by Second Order AI. Full reporting is at the original source.