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Elon Musk announced SpaceX has acquired xAI with plans to build AI datacenters in space powered by solar energy. Musk claims space-based AI compute will become cost-effective within 2-3 years, proposing to launch satellites generating 100 gigawatts of AI capacity annually using Starship rockets, and eventually establishing lunar factories to manufacture and deploy petawatt-scale AI infrastructure. The announcement follows similar proposals from Jeff Bezos and Google's Project Suncatcher, though concerns remain about oversight, maintenance, and ethical implications of orbital AI systems.

Elon Musk merging xAI with SpaceX in wild sci-fi vision