SpaceX has acquired artificial intelligence startup xAI in a transaction that media reports said values the combined entity at around $1.2 trillion, creating one of the most ambitious technology platforms ever assembled. Financial details were not formally disclosed by the companies.
The deal brings together two ventures founded by billionaire entrepreneur Elon Musk, further consolidating his expanding portfolio spanning space launch systems, satellite internet, artificial intelligence and real-time information platforms. The combined organisation aims to integrate AI development directly with SpaceX’s launch capabilities and satellite infrastructure.
In a statement announcing the acquisition, the companies said the merger would form a “vertically integrated innovation engine” combining AI, rockets, space-based internet, direct-to-mobile communications and real-time information systems. They described the move as “not just the next chapter, but the next book” in their long-term mission.
The statement highlighted the growing strain that artificial intelligence places on terrestrial infrastructure, noting that modern AI systems depend on massive data centres requiring enormous amounts of electricity and cooling. According to the company, global power demand for AI cannot be sustainably met on Earth without imposing environmental and social costs.
As a result, SpaceX and xAI argued that space-based AI computing is the only viable long-term solution for scaling. By deploying orbital data centres powered by near-constant solar energy, the companies believe they can dramatically reduce operating costs while unlocking unprecedented computing capacity. “It’s always sunny in space,” the statement said.
The strategy hinges on SpaceX’s Starship rocket, which is designed to carry heavy payloads to orbit at high launch frequencies. The company said Starship will begin deploying next-generation Starlink satellites this year, each offering more than 20 times the capacity of current versions, while also enabling full global direct-to-mobile cellular coverage.
According to the statement, launching vast constellations of AI-enabled satellites could eventually add hundreds of gigawatts of computing power annually, with a long-term pathway to terawatt-scale capacity. Such capabilities, the company said, would allow humanity to move toward a Kardashev Type II civilisation, capable of harnessing a significant portion of the Sun’s energy.
Beyond Earth orbit, the merged venture envisions using Starship to support permanent operations on the Moon and, eventually, self-sustaining settlements on Mars. The companies said space-based AI infrastructure could fund and enable humanity’s expansion into the solar system, positioning the SpaceX–xAI merger as a cornerstone of a multi-planetary future. - TradeArabia News Service
