"In the long term, space-based AI is obviously the only way to scale. To harness even a millionth of our Sun's energy would require over a million times more energy than our civilization currently uses! The only logical solution therefore is to transport these resource-intensive efforts to a location with vast power and space. I mean, space is called "space" for a reason."
"The deal will integrate xAI's advanced AI capabilities, including the Grok chatbot and massive training infrastructure, with SpaceX's rocket technology, Starlink satellite network, and ambitious space exploration goals. The acquisition comes at a pivotal moment: xAI is valued at around $230 billion as of late 2025, and has been racing to scale AI compute amid global competition from companies like OpenAI, Google, and Meta. Meanwhile, SpaceX, which was recently valued at $800 billion, is facing escalating costs for its multiplanetary ambitions."
SpaceX completed the acquisition of xAI, merging advanced AI models and massive training infrastructure with rockets, Starlink satellites, and space-exploration assets. The merger establishes a vertically integrated innovation engine intended to address AI compute's enormous energy and infrastructure demands. xAI carried a valuation near $230 billion in late 2025 while SpaceX sat near $800 billion, with rising costs for multiplanetary objectives. The combined resources aim to overcome terrestrial power constraints by leveraging space-based energy and orbital data centers. An estimate projects that within two to three years the lowest-cost AI compute will be generated in space, motivating transport of resource-intensive efforts off-Earth.
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