SpaceX has acquired Elon Musk’s AI company xAI to boost its space AI power. With this move, the company plans to combine artificial intelligence with advanced space technology. As a result, SpaceX says the merger will create a “vertically integrated innovation engine” to advance AI, rockets, satellites, and real-time communication. Moreover, the company plans to launch a huge constellation of satellites that will act as orbital data centers. This network will provide the computing power xAI needs to run AI operations globally. Therefore, Musk believes space AI power will allow AI to operate anywhere, including directly to mobile devices.
xAI was founded recently and developed the chatbot Grok and the social media site X. Although the company faces criticism for some AI content, Musk is confident that AI will remain central to the future. Furthermore, the merger shows his commitment to combining space technology with AI. SpaceX already has extensive experience in satellite deployment. It operates more than 9,600 satellites, far more than any other company or country. In addition, its reusable rockets deliver cargo to low-Earth orbit at lower costs than competitors. Musk plans to use Starship, SpaceX’s heavy-lift rocket, to launch large volumes of satellites for AI computing.
According to Musk, each launch will carry hundreds of tons into orbit. Consequently, the company aims to reach millions of tons per year, generating vast AI computing power. He explained that space AI power will make AI more cost-efficient and allow companies to process data faster than ever before. Nevertheless, experts have raised concerns about orbital safety. The satellites will require large solar arrays and precise positioning. At the same time, space debris at certain altitudes can remain for centuries, creating long-term risks. To address this, SpaceX plans to equip satellites with systems to avoid collisions and safely deorbit aging satellites.
Musk sees the AI satellites as part of a bigger plan. For example, Starship will also support Moon missions, building factories and research bases using lunar resources. From there, Mars missions will benefit from the same technology. Ultimately, Musk believes space AI power will fund and enable life on the Moon, settlements on Mars, and human expansion across the Universe. By merging SpaceX and xAI, Musk aims to push AI technology beyond Earth. In addition, orbital data centers may make computing faster, cheaper, and more widely available. If successful, this initiative could transform both space exploration and artificial intelligence forever.
