Tesla-SpaceX merger could fuel AI spending spree across Musk’s $3.5 trillion empire

Elon Musk’s proposed $3.5 trillion (£2.6 trillion) merger of Tesla and SpaceX could unlock a wave of AI investment, giving the billionaire greater access to cash and borrowing power as he races to expand his tech empire. Analysts said combining the two businesses could help Musk fund his increasingly expensive AI ambitions, bringing together Tesla’s cash reserves and SpaceX’s growing computing business under one roof. Steven Wahrhaftig, vice president of equity research at Wedbush, told City AM the deal would likely lead to an increase in AI spending, with the combined company expected to turn to debt markets to fund its expansion. The debt markets will definitely be tapped into , he said. Both have investment-grade ratings for its debt so wouldn’t surprise me if there was more than one debt-led funding round . Tesla also holds around $45bn in cash, which Wahrhaftig said would strengthen the combined group’s finances and support investment in AI infrastructure. Musk co