Musk joins his rocket and AI businesses into a single company before an expected IPO this year
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Musk joins his rocket and AI businesses into a single company before an expected IPO this year
"Musk has talked repeatedly about the need to speed development of technology that will allow data centers to operate in space to solve the problem of overcoming the huge costs in electricity and other resources in building and running AI systems on Earth. It's a goal that Musk said in his announcement of the deal could become much easier to reach with a combined company."
"In the long term, space-based AI is obviously the only way to scale, Musk wrote on SpaceX's website Monday, then added in reference to solar power, It's always sunny in space! Musk said in SpaceX's announcement he estimates that within 2 to 3 years, the lowest cost way to generate AI compute will be in space. It's not a prediction shared by other many companies building data centers, including Microsoft."
SpaceX acquired xAI, merging Musk's AI and space ventures to consolidate Grok, Starlink and X under one company ahead of a planned large IPO. Musk intends to accelerate development of technology enabling data centers to operate in space to reduce electricity and resource costs for AI compute. Musk projects that within two to three years the cheapest way to generate AI compute will be in space, citing continuous solar power. Microsoft expressed skepticism about moving data centers to low Earth orbit. Google is also researching solar-powered AI satellites through Project Suncatcher. Musk previously combined Tesla and SolarCity.
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