Elon Musk just pulled off his biggest corporate shuffle yet. SpaceX has officially acquired xAI, the billionaire’s artificial intelligence startup. Since xAI already absorbed the social media platform X last year, SpaceX now owns the social network too. Musk claims this merger creates a massive “innovation engine” that links rockets, satellite internet, AI, and social media into one giant machine.
The move sounds strange at first, especially since xAI is mostly known for its chatbot. However, Musk has a specific, high-tech goal: moving AI into orbit. He argues that Earth simply does not have enough electricity to power the massive data centers that modern AI requires. In his view, moving these resource-heavy operations into space is the only logical solution to the energy crisis. To start this project, SpaceX recently filed paperwork with the FCC to launch a staggering one million new satellites. These would serve as a massive “orbital data center.”
Musk believes these space-based computers will eventually fund his dreams of colonizing other worlds. He says the technology will provide the money and the tools to build self-sustaining bases on the Moon and a full-scale civilization on Mars. Of course, Musk has made big promises before. In 2017, he predicted SpaceX would send people to Mars by 2024, a deadline that has already passed without a crewed mission.
This deal also shows how Musk is tying his business empire closer together. Tesla recently put $2 billion into xAI, and reports suggest SpaceX is even discussing a future merger with the car company. All of this is happening as SpaceX prepares for an initial public offering (IPO) later this year. Financial experts believe the company could be worth more than $1 trillion once it hits the stock market.
By folding xAI and X into SpaceX, Musk is creating a single company that controls everything from internet communications to deep-space travel. He is betting his entire reputation on the idea that the future of AI isn’t on Earth, but in the stars.
