tech
February 3, 2026
SpaceX acquires xAI, plans to launch a massive satellite constellation to power it
“This marks not just the next chapter, but the next book in SpaceX and xAI’s mission.”
TL;DR
- SpaceX has formally acquired Elon Musk's AI company, xAI.
- The merger aims to create a vertically-integrated innovation engine combining AI, rockets, space-based internet, and communications.
- xAI's products include the generative AI chatbot Grok and the social media site X.
- The plan involves deploying up to 1 million orbital data centers using SpaceX's launch and satellite capabilities.
- Elon Musk believes orbital data centers will become the most cost-effective way to generate AI compute within 2-3 years.
- SpaceX recently filed for permission to launch 1 million satellites as orbital data centers.
- Concerns exist regarding space debris, collision risks, and the environmental impact of re-entering satellites.
- Musk views this integration as a step toward funding and enabling lunar bases and Mars colonization.
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