SpaceX Acquires xAI, Musk Outlines Plan for Space-Based AI Data Centers

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MUMBAI, India — Entrepreneur Elon Musk said his aerospace company SpaceX has acquired his artificial intelligence startup xAI and outlined ambitious plans to scale AI computing in space through large constellations of satellites designed to function as orbital data centers.

In a statement, Musk said deploying satellites at a rate of one million tonnes per year, with each tonne generating kilowatts of computing power, could add as much as 100 gigawatts of AI compute capacity annually. He added that, over time, there is a potential pathway to launching as much as one terawatt of computing capacity per year from Earth.

Musk argued that space-based AI infrastructure offers the only viable long-term solution to meeting the massive energy demands of advanced AI systems. He said satellites in orbit can draw near-constant solar power, allowing AI compute to be delivered at far lower cost than traditional land-based data centers, without ongoing operational or maintenance requirements.

According to Musk, the cost efficiency of orbital computing would allow companies to train AI models and process data at unprecedented speed and scale. He said harnessing even a tiny fraction of the sun’s energy would require power levels far beyond what current global civilization consumes, making space a logical location for energy-intensive AI workloads.

He noted that today’s AI advances rely heavily on large terrestrial data centers, which require vast amounts of electricity and cooling. Musk warned that global power demand driven by AI growth cannot be met through land-based infrastructure alone, even in the near term, without placing strain on communities and the environment.

Musk said SpaceX’s Starship launch system is expected to begin deploying significantly more powerful next-generation Starlink satellites starting in 2026. Each Starship launch would add more than 20 times the capacity of current Falcon launches carrying existing Starlink satellites.

He said the system is designed to support launches as frequently as once per hour, with each flight capable of carrying around 200 tons, eventually enabling the delivery of millions of tons of payloads into orbit and beyond.

In addition to AI-focused infrastructure, Musk said Starship will also deploy a new generation of direct-to-mobile satellites aimed at providing full cellular coverage across the globe. (Source: IANS)