- SpaceX buys xAI to form new mega-corporation
- Elon Musk promises to move AI computing power into space
- Experts disagree on whether the ambitious plans can work
Elon Musk has created the most valuable private company in the world, reportedly valued at a hefty $1.25 trillion, by merging rocket-making outfit SpaceX and artificial intelligence developer xAI into a mega-company poised to bring AI computing into orbit.
SpaceX has now acquired xAI to create “the most ambitious, vertically integrated innovation engine on (and off) Earth” – according to the official press release written by Elon Musk himself, CEO of both companies.
This follows news over the weekend that SpaceX plans to launch up to a million satellites into space in the coming years, ready to move AI computing infrastructure from Earth to orbit.
With an unlimited amount of space in space and power provided by solar energy – at least in theory – the idea is that our ever-growing need for AI capabilities could be met by moving the back end of the operation out of Earth’s atmosphere.
To the stars
“In the long term, space-based artificial intelligence is obviously the only way to scale,” Musk says. “Harnessing even one millionth of our sun’s energy would require over a million times more energy than our civilization currently uses!”
The solution is apparently to make a “sentient sun” out in space with constellations of satellites, according to Musk. These efforts will draw on all the expertise of SpaceX and technologies currently used for Starlink satellites and Falcon rockets.
Future Starship rocket launches are planned to put more and more computing power into orbit, with the goal of launching a terawatt of AI computing capacity each year. In the longer term, installations on the Moon are also planned.
“The possibilities we unlock by making space-based data centers a reality will fund and enable self-growing bases on the Moon, an entire civilization on Mars, and ultimately expansion into the universe,” Musk concludes.
Do the numbers add up?
According to Pakinomist, the deal could still attract scrutiny from regulators ahead of a planned IPO (Initial Public Offering) for SpaceX. However, analysts believe that the agreement makes sense – by combining income from both space operations and artificial intelligence.
Emma Wall, investment strategist at Hargreaves Lansdown, told the BBC that the merger combined “two incredibly cutting-edge technologies”, but warned that any benefits would not be seen by users on planet Earth for at least a decade.
Elon Musk is not alone in believing that the future of AI data centers lies in space: Google, Amazon and Nvidia are among the major technology companies that have backed the idea, with Google planning a first launch sometime in 2027.
Not everyone is convinced that the numbers are going up. Space economist Pierre Lionnet at Eurospace told the New York Times that the idea that operating costs for space would drop enough to make this work was “totally nonsensical”.
Phil Metzger, a physics professor at the University of Central Florida, is more optimistic that the economy will make sense in the short term. “As a business case, it’s plausible,” he told the NYT. “It’s been a development in development.”
In other words, while this ambitious plan has a long way to go, orbital AI data centers are gearing up for launch—and a new space race is brewing.
Follow TechRadar on Google News and add us as a preferred source to get our expert news, reviews and opinions in your feeds. Be sure to click the Follow button!
And of course you can also follow TechRadar on YouTube and TikTok for news, reviews, video unboxings, and get regular updates from us on WhatsApp also.
The best laptops for all budgets
