SpaceX Acquires Elon Musk’s xAI, Plans to Build Data Centers in Space

SpaceX has announced that it has acquired artificial intelligence startup xAI in a deal that merges two companies owned by Elon Musk.

In a statement, Musk said the agreement would create “the most ambitious and vertically integrated engine of innovation on (and beyond) Earth, combining AI, rockets, space-based internet, direct-to-device mobile communications, and the world’s largest real-time information platform and free speech.”

The world’s richest man, who also owns Tesla, the social media platform X, and satellite communications company Starlink, said the merger aims to develop AI data centers in space, calling the move “not just the next chapter, but the next book in the mission of SpaceX and xAI,” according to international media reports cited by Story News.

X, formerly Twitter, was acquired by xAI last year. Musk bought Twitter in 2022 for $44 billion.

According to Bloomberg, the combined company would have an estimated valuation of $1.25 trillion (around €1.06 trillion), and the deal comes ahead of SpaceX’s expected initial public offering (IPO), which is anticipated to be announced later this year.

SpaceX is not the only company exploring the idea of placing AI data centers in space.

Last year, Google unveiled a new research initiative called Project Suncatcher, which aims to equip solar-powered satellites with AI computer chips.

The acquisition of xAI by SpaceX comes just weeks after X faced criticism following complaints that users were using the platform’s AI chatbot, Grok, to generate sexualized images of real women and children.

This triggered an investigation by the UK’s independent online safety regulator, Ofcom, and calls from Prime Minister Sir Keir Starmer for the platform to comply with UK laws “immediately.”

Source: Story News