Elon Musk's SpaceX is considering a potential merger ​with Tesla as well as ‌an alternative combination with artificial-intelligence company xAI, Bloomberg News reported on Thursday, citing people familiar with the matter.

SpaceX and xAI are in discussions to merge ahead of a ‍blockbuster public offering planned for later this year to ⁠bring Musk's rockets, Starlink satellites, ‍the X social media platform and the Grok AI ‌chatbot ‌under one roof, Reuters reported.

The space firm has discussed the feasibility of a tie-up between SpaceX and EV-maker Tesla, an ⁠idea that ⁠some ​investors are pushing, the Bloomberg report said.

Any deal could attract sizable interest from infrastructure funds ‍and Middle Eastern sovereign investors, some of the people told Bloomberg.