Elon Musk has merged his artificial intelligence company xAI into SpaceX, a move aimed at developing space-based data centers to support the next phase of AI computing, the company said on Monday, reports AFP.
The acquisition brings together SpaceX’s rocket and satellite capabilities with xAI’s artificial intelligence technology, creating what Musk described as “the most ambitious, vertically integrated innovation engine on (and off) Earth.”
The merger comes as the massive capital and energy demands of large-scale AI development begin to strain even the largest technology companies. Musk said SpaceX plans to deploy a constellation of satellites that would function as orbital data centers, drawing solar power in space to meet AI’s rapidly growing electricity needs.
“These needs cannot be met on Earth without imposing hardship on communities and the environment,” Musk said. “By directly harnessing near-constant solar power with little operating or maintenance costs, these satellites will transform our ability to scale compute.”
SpaceX aims to eventually deploy up to one million satellites operating as data centers, launched using its Starship rocket. The company said Starship is expected to reach launch rates of up to one flight per hour, carrying payloads of as much as 200 tons.
The announcement did not disclose financial terms of the acquisition or provide a timeline for initial satellite deployments. Bloomberg reported that the combined entity could have a valuation of about $1.25 trillion.
The deal further consolidates Musk’s expanding business empire, which already includes electric carmaker Tesla and social media platform X, formerly Twitter. Musk previously merged X with xAI after acquiring Twitter in late 2022. xAI, which operates the Grok chatbot, was valued at $230 billion in a January funding round.
By combining the companies, Musk aims to pool capital, computing resources and talent as he pursues his long-term vision of relocating data-intensive AI infrastructure beyond Earth.
According to U.S. media reports, SpaceX is targeting a mid-June initial public offering that could raise as much as $50 billion. The company dominates the global space launch market with its reusable rockets and operates the world’s largest satellite constellation through Starlink.
Musk had previously opposed a SpaceX IPO, citing his discomfort with the scrutiny faced by publicly traded Tesla and arguing that market pressure for short-term returns conflicted with his goal of settling Mars. However, SpaceX’s current ambitions—including the development of Starship for missions to the Moon and Mars—will require unprecedented levels of investment, pushing the company toward new sources of capital.
Bd-pratidin English/ Jisan
