Much is being said about the merger of Elon Musk's xAI and SpaceX, which would create an organization worth $1.25 trillion, but can it really be done?
Perhaps the biggest roadblock could be regulatory constraints that appear because of the publicity of the merged company becoming the Most Valuable Private Company in the World.
It's not clear so far what possible anti-competitive or antitrust concerns the merger might create, but Seven Reports Partner Tom Essaye says the deal itself makes sense.
"The two kind of leading edge technology companies that he has under his broad umbrella are xAI and SpaceX," he points out, so they're a natural to merge together.
Both of them are private companies, while Musk's other cutting edge company, Tesla, is a public entity.
One of the complicating factors of the new merger is the plan previously outlined by SpaceX to go public later this year, which means a re-evaluation of the merged company's prospects by potential sharebuyers.
But Essaye says. much as with Tesla, with Musk companies stockholders are buying the concepts as well as the company shares.
"You're not investing in Tesla for the cars, you're investing in it for robotaxis for cars for the future, for technology."