WSJ: Musk wants to combine a $2T rocket company with a $1.5T carmaker around AI.

SpaceX’s AI unit is now its largest business, with third-quarter revenue of $7.56B against $813M a year earlier, and more than $16.4B of its $19.6B quarterly capital spending went to AI.

That growth turned SpaceX to a $4.4B quarterly profit from a $1.05B loss, giving it the financial weight to absorb Tesla rather than the reverse.

The AI case for the merger treats Tesla’s robotaxis and Optimus robots as the front end and SpaceX’s data centers and satellite links as the infrastructure they would depend on.