
"It's a goal that Musk suggested in his announcement of the deal could become 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 his announcement he estimates "that within 2 to 3 years, the lowest cost way to generate AI compute will be in space.""
"But Musk's prediction of a near future of space-based AI supercomputers is not shared by many other companies building data centers, including Microsoft. "I'll be surprised if people move from land to low-Earth orbit," Microsoft's president, Brad Smith, told The Associated Press last month, when asked about the alternatives to building data centers in the U.S. amid rising community opposition."
SpaceX acquired xAI and will integrate AI chatbot Grok, satellite communications provider Starlink, and social media platform X into a single company. The combined company aims to develop technology to run AI data centers in space to reduce electricity and resource costs associated with large-scale AI on Earth. A projection in the deal estimates that within two to three years the lowest-cost way to generate AI compute could be in space. Google is developing Project Suncatcher to equip solar-powered satellites with AI chips, while Microsoft expresses skepticism about moving data centers to low-Earth orbit.
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