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Elon Musk's SpaceX has acquired his AI company, xAI

TL;DR

SpaceX acquires Elon Musk's AI company xAI to form the 'most ambitious, vertically-integrated innovation engine on (and off) Earth,' combining AI, rockets, space internet, and communications. Musk justifies the move with plans to build AI data centers in space, claiming global electricity demand for AI cannot be met with terrestrial solutions. SpaceX has filed an FCC application to create an 'orbital data center' by launching up to one million new satellites. xAI is currently best known for its CSAM-generating chatbot—a strange fit for a rocket company at first glance.

Nauti's Take

An orbital AI data center sounds like sci-fi, but it's the logical endpoint when you combine Musk's resources with his megalomania. The problem: xAI has so far made headlines mainly for its problematic chatbot, not technical breakthroughs.

Whether the FCC will approve one million additional satellites is questionable—Starlink already dominates orbit. And even if they do: cooling, maintenance, latency—physics in space is brutal.

This could be Musk's wildest plan yet, or his most expensive failure.

Summary

SpaceX acquires Elon Musk's AI company xAI to form the 'most ambitious, vertically-integrated innovation engine on (and off) Earth,' combining AI, rockets, space internet, and communications. Musk justifies the move with plans to build AI data centers in space, claiming global electricity demand for AI cannot be met with terrestrial solutions.

SpaceX has filed an FCC application to create an 'orbital data center' by launching up to one million new satellites. xAI is currently best known for its CSAM-generating chatbot—a strange fit for a rocket company at first glance.

Sources