SpaceX Acquires xAI to Build Space-Based AI Data Centers
Long-Term Plans Could See Expansion Beyond Earth Orbit
SpaceX has acquired xAI in a merger aimed at creating what the company describes as a vertically-integrated innovation platform combining artificial intelligence, rocket technology, satellite internet, and communications systems. The acquisition announcement, posted on the SpaceX website, outlined ambitious plans to deploy AI data centers in orbit as part of a long-term vision for space-based computing infrastructure.
The move comes in advance of an anticipated SpaceX IPO sometime this year.
According to the announcement, current AI development relies heavily on terrestrial data centers that consume massive amounts of electricity and cooling resources. The companies argue that global electricity demand for AI cannot be sustainably met through ground-based solutions without environmental and community impacts.
The merged entity plans to launch a constellation of satellites functioning as orbital data centers that would harness solar power continuously in space. The announcement described this as a first step toward what it termed a “Kardashev II-level civilization”—a theoretical designation for societies capable of harnessing their star’s full energy output.
SpaceX’s Starship rocket would serve as the primary launch vehicle for the initiative. The company stated that with launches carrying 200 tons per flight, Starship could eventually deliver millions of tons to orbit annually. The announcement projected that launching one million tons per year of satellites generating 100 kilowatts of computing power per ton would add 100 gigawatts of AI computing capacity each year.
The companies estimated that within two to three years, space-based AI computing could become the most cost-effective option for processing and training AI models.
Long-term plans outlined in the announcement extend beyond Earth orbit. The companies described potential lunar manufacturing facilities that could produce satellites using lunar resources and deploy them into deeper space using electromagnetic launch systems. These facilities could theoretically enable deployment of substantially larger amounts of computing infrastructure throughout the solar system.
The announcement emphasized that the orbital data center constellation would follow space sustainability practices, including end-of-life disposal strategies already used for SpaceX’s Starlink broadband satellites.