Briefly
SpaceX has acquired xAI, bringing Musk’s synthetic intelligence efforts instantly underneath the aerospace firm.
Musk argues that electrical energy demand and cooling necessities are limiting the expansion of Earth-based AI information facilities.
The plan depends on Starship to deploy large-scale orbital information facilities powered by near-constant photo voltaic vitality.
Elon Musk is transferring his synthetic intelligence ambitions into orbit, asserting on Monday that SpaceX has acquired xAI, Musk’s synthetic intelligence startup.
The transfer brings AI improvement instantly underneath the aerospace firm’s management, a yr after merging his social media firm X with xAI.
In an announcement printed on SpaceX’s web site, Musk mentioned the acquisition displays rising limits on Earth-based energy and cooling infrastructure, which he argues now constrain the scaling of superior AI methods.
Musk didn’t disclose the acquisition worth, however The Info reported that SpaceX purchased xAI for $250 billion. The information comes as rumors of SpaceX submitting for an IPO proceed to flow into. Following the xAI acquisition, SpaceX is now valued at $1.25 trillion in line with Bloomberg.
“World electrical energy demand for AI merely can’t be met with terrestrial options, even within the close to time period, with out imposing hardship on communities and the atmosphere,” Musk wrote. “In the long run, space-based AI is clearly the one technique to scale. To harness even a millionth of our Solar’s vitality would require over one million occasions extra vitality than our civilization at the moment makes use of.”
Whereas Musk has mentioned AI may someday surpass human intelligence, finite sources and considerations concerning the environmental impression of information facilities have slowed improvement.
Musk’s proposed answer is a constellation of as much as a million satellites designed to operate as orbital information facilities, shifting massive parts of AI compute infrastructure past Earth’s bodily constraints.
Musk’s expansive imaginative and prescient for xAI hinges on Starship, SpaceX’s reusable heavy-lift spacecraft, which has but to show sustained operational reliability following a take a look at explosion over Turks and Caicos final yr. Musk mentioned that in 2025, about 3,000 tons of payload reached orbit, primarily by way of Falcon rockets, and argued that Starship is designed to function at a far bigger scale.
“My estimate is that inside two to 3 years, the bottom value technique to generate AI compute will likely be in house,” he mentioned. “This cost-efficiency alone will allow revolutionary firms to forge forward in coaching their AI fashions and processing information at unprecedented speeds and scales, accelerating breakthroughs in our understanding of physics and invention of applied sciences to learn humanity.”
The acquisition raises technical challenges for SpaceX, notably in transmitting alerts again to customers on Earth. Musk mentioned latency could possibly be addressed by way of integration with Starlink’s laser-based satellite tv for pc community, whereas lunar sources and off-Earth manufacturing may assist heavier infrastructure.
Different considerations embrace Grok, xAI’s AI system, which has drawn scrutiny following a number of high-profile incidents, together with a July 2025 episode during which it claimed to be “MechaHilter” and a more moderen incident involving the technology of non-consensual sexual photographs.
“Grok has proven a repeated historical past of those meltdowns, whether or not it’s an antisemitic meltdown or a racist meltdown, a meltdown that’s fueled with conspiracy theories,” Public Citizen’s big-tech accountability advocate J.B. Department beforehand instructed Decrypt.
SpaceX didn’t instantly reply to a request for remark by Decrypt.
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