Ross Gerber, co-founder of investment firm Gerber Kawasaki, has questioned Elon Musk's strategy of having his companies merge amid the SpaceX–xAI merger.
What Would Happen When The Money Runs Out?
In a post on the social media platform X on Monday, the investor questioned what would happen when all of the Musk-led companies face cash flow issues. "X was out of money. Merged with xAI," Gerber said. He then outlined that xAI, too, was "out of money," which possibly led to the SpaceX merger.
"SpaceX out of money. Merge with …. tesla," the investor said. "When they are all out of money…." he concluded, questioning the logic behind the mergers.
It's worth noting that xAI reported a loss of $1.46 billion during Q3, spending close to $7.8 billion during the first nine months of 2025. As far as revenue is concerned, the startup generated $107 million in revenue during Q3.
SpaceX-xAI Merger Details
The deal, which values the commercial spaceflight company at close to $1 trillion and xAI at roughly $250 billion, would also be expected to price the combined company's shares at around $527, according to people familiar with the matter.
The deal between SpaceX and xAI could help boost Musk's space-based datacenter ambitions, something which the billionaire has talked about on multiple occasions, touting it as a cost-effective solution to the ground-based datacenters on Earth.
SpaceX To Merge With Tesla?
The possible deal has also been questioned by "The Big Short" investor Michael Burry, who, in a post on the social media platform X last week, called Musk a "desperately incentivized futurist."
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