One month after announcing a $20 billion Series E, artificial intelligence company xAI was acquired by SpaceX to “form the most ambitious, vertically integrated innovation engine on (and off) Earth, with AI, rockets, space-based internet, direct-to-mobile device communications, and the world’s foremost real-time information and free speech platform,” said Elon Musk, who controls both entities.
Musk believes that Earth-based data centers can’t sustainably meet the massive energy demands of advanced AI, so the long-term solution is to move AI compute into space, where near-constant solar power is abundant and operating costs are low.
"This marks not just the next chapter, but the next book in SpaceX and xAI’s mission: scaling to make a sentient sun to understand the Universe and extend the light of consciousness to the stars!" said Musk on SpaceX’s acquisition of xAI.
“Current advances in AI are dependent on large terrestrial data centers, which require immense amounts of power and cooling. Global electricity demand for AI simply cannot be met with terrestrial solutions, even in the near term, without imposing hardship on communities and the environment,” said Musk, whose plan centers on building orbital data centers—huge constellations of satellites that function as space-based compute infrastructure.
SpaceX’s Starship is positioned as the enabling technology, capable of launching far more mass than any previous rocket. At scale, launching about a million tons of satellites per year could add roughly 100 gigawatts of AI compute annually, with a theoretical path toward terawatt-scale growth. Musk predicts that within a few years, space may become the least expensive place to generate AI compute, accelerating scientific discovery and technological innovation.
“The capabilities we unlock by making space-based data centers a reality will fund and enable self-growing bases on the Moon, an entire civilization on Mars, and ultimately expansion to the Universe,” said Musk.
