tech
February 4, 2026
Space-Based AI: Musk's Plan for AI Data Centres on the Moon
Elon Musk's companies SpaceX and xAI are merging to create the most valuable private company in the world, thought to be worth more than US$1tn
TL;DR
- SpaceX is acquiring xAI, creating a company valued around US$1.25tn.
- The aim is to build space-based, solar-powered AI satellites that function as data centers.
- Musk proposes using the Moon for manufacturing satellites and establishing a permanent scientific and manufacturing presence.
- Starship will be used to deliver satellites to orbit and transport cargo to the Moon.
- Musk believes space offers a solution for the immense energy needs of AI, citing the Sun's abundant solar power.
- The combined entity aims to ascend the Kardashev scale by harnessing a significant percentage of the Sun's power.
- Musk discussed AI and robotics potential at the World Economic Forum, foreseeing an era of global abundance.
- xAI was previously a division of X and later acquired X in an all-stock deal.
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