SpaceX Merges with xAI Firms to Develop Space-Based AI Data Centres
February 3, 2026 • Al Jazeera
Elon Musk Announces Merger with AI Company, Plans for Space-Based Data Centers
SpaceX has acquired xAI, an artificial intelligence company founded by Elon Musk, in a move aimed at developing space-based data centers to power the future of artificial intelligence. The merger was announced on Tuesday through a statement on SpaceX’s website.
According to Musk, the acquisition will help address the growing need for energy to support the increasing demands of artificial intelligence. He stated that AI requires “immense amounts of power and cooling” that cannot be sustained on Earth without causing hardship to communities and the environment.
Musk believes that space-based data centers, which harness the power of the Sun, are the only viable long-term solution. He noted that even a small fraction of the energy available from the Sun would require significantly more energy than current human civilization uses.
The merger will bring together several of Musk’s projects under one umbrella, including SpaceX’s Falcon and Starship rocket programs, xAI’s AI-powered Grok chatbot, and social media platform X (formerly Twitter). Both companies have contracts with US government agencies such as NASA and the Department of Defense.
Musk plans to launch a million satellites into space, with SpaceX’s Starship rocket program aiming to launch one flight per hour with a 200-tonne payload. He also announced that SpaceX’s Starlink satellite internet service will receive an upgrade with the launch of new V3 satellites, which will increase capacity by more than 20 times.
Other companies, including Blue Origin and Google’s Project Suncatcher, are also exploring solar-powered space-based data centers as a solution to AI’s energy demands.
Source: Al Jazeera