Elon Musk says the combined companies will pursue orbital data centers and expanded launch capacity to scale artificial intelligence and space operations.

By yourNEWS Media Newsroom

SpaceX has acquired xAI, bringing the artificial intelligence firm under the same corporate umbrella as the aerospace company in a move aimed at accelerating development across AI, launch systems, satellite communications, and space-based infrastructure, according to a post by the company on X.

Elon Musk announced the acquisition, describing it as a step toward building a vertically integrated technology platform that combines AI development, orbital launch capability, satellite networks, and global communications. Musk said the integration is intended to support long-term goals that include large-scale computing, space exploration, and expanded access to real-time information.

According to Musk, current advances in artificial intelligence depend heavily on large, terrestrial data centers that require substantial electricity, cooling, and physical space. He argued that global demand for AI compute power will outpace what land-based infrastructure can reasonably supply without placing increasing strain on energy systems and surrounding communities.

As an alternative, Musk outlined a vision for space-based AI computing, powered primarily by continuous solar energy. He said orbital platforms could bypass many of the limitations faced by Earth-based facilities, including land constraints and intermittent power generation. In the near term, the plan centers on deploying large constellations of satellites that function as orbital data centers, generating and processing AI workloads in space.

Musk tied the feasibility of this approach to SpaceX’s launch capabilities, particularly the company’s next-generation heavy-lift rocket, Starship. He said the need to deploy large numbers of satellites previously drove rapid improvements in the Falcon rocket program, enabling frequent launches for the Starlink broadband network. That same dynamic, he said, will now apply to Starship as it begins carrying more powerful satellites into orbit.

SpaceX plans for Starship to launch upgraded versions of Starlink satellites, including models designed to support direct-to-mobile cellular service worldwide. Musk said the scale required for space-based data centers would push launch rates higher, potentially reaching hourly flights carrying up to 200 tons per launch.

Based on Musk’s estimates, launching roughly one million tons of satellites per year, each generating about 100 kilowatts of computing power per ton, would add approximately 100 gigawatts of AI compute capacity annually. He said there is a longer-term path toward deploying up to one terawatt of computing capacity per year, with space-based systems eventually becoming the lowest-cost option for AI processing within the next two to three years.

The plan also includes provisions for satellite sustainability, with Musk stating that future constellations would build on existing end-of-life disposal practices already used for SpaceX’s broadband systems.

Beyond Earth orbit, Musk said Starship’s capabilities could enable permanent operations on the Moon, including scientific outposts and manufacturing facilities that use local resources. He described the potential use of lunar production and electromagnetic launch systems to deploy additional satellites deeper into space, significantly expanding available energy and computing capacity.

Musk framed the long-term objective as advancing humanity toward a higher level of energy utilization, often described as progression along the Kardashev scale, by harnessing a greater share of solar power to support technological growth, space settlement, and exploration.

He concluded that the combined efforts of SpaceX and xAI are intended to support sustained expansion beyond Earth, with future goals including permanent lunar operations, a civilization on Mars, and continued development of space-based infrastructure to support scientific and technological advancement.

Original article