Investing.com -- Elon Musk’s SpaceX and xAI are discussing a potential merger before a major initial public offering planned for later this year, according to a Reuters report on Thursday. Under the proposed arrangement, xAI shares would be exchanged for SpaceX shares, with two Nevada entities established to facilitate the transaction. Some xAI executives might receive the option to take cash instead of SpaceX stock as part of the deal. SpaceX currently holds the title of the world’s most valuable private company, with a recent valuation of $800 billion from an insider share sale. Related articlesReport: SpaceX and xAI in merger talks ahead of planned IPOApple acquires Israeli AI startup Q.ai in first sizeable deal in yearsCarvana stock defended at BTIG amid DriveTime allegations