Elon Musk, the world’s richest man and visionary entrepreneur, has unveiled a groundbreaking merger between his aerospace giant SpaceX and his AI startup xAI. The bold move paves the way for launching massive AI data centers directly into orbit, revolutionizing computing power for artificial intelligence.
In a detailed statement, Musk outlined plans to deploy swarms of satellites that function as orbiting data centers. By launching one million tons of satellites annually, each ton providing several kilowatts of compute power, SpaceX could add approximately 100 gigawatts of AI computing capacity every year. Remarkably, these space-based systems would require no additional operational costs for maintenance or fueling.
The core advantage lies in space’s abundant, nearly constant solar energy. Unlike Earth-bound data centers that guzzle electricity and demand extensive cooling, orbital satellites harness uninterrupted sunlight, slashing costs dramatically. Musk emphasized that advanced AI demands enormous power, and space offers the ultimate long-term solution.
‘If we use just one millionth of the sun’s energy, it would be a million times more than our current civilization needs,’ Musk noted. This underscores why resource-intensive AI training and data processing must migrate off-planet to avoid straining Earth’s grids and environments.
Earth’s data centers already face mounting challenges with power consumption and cooling. Musk warned that relying solely on terrestrial infrastructure for AI’s exponential growth could harm people and the planet. SpaceX’s Starship rocket will accelerate this shift, starting in 2026 with V3 Starlink satellites boasting 20 times the capacity of current models.
Future launches aim for 200 tons per hour, enabling millions of tons of material to reach orbit annually. Alongside AI compute sats, next-gen direct-to-mobile satellites will deliver global mobile connectivity, blanketing every corner of Earth.
This acquisition and orbital AI strategy positions SpaceX and xAI at the forefront of humanity’s next computing frontier, blending rocketry prowess with AI innovation for unprecedented scalability.