SpaceX acquires xAI as Musk targets space-based data centres
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The news: Elon Musk’s aerospace company SpaceX has acquired his AI startup xAI, according to a post on the company's website.
The context: "SpaceX has acquired xAI to form the most ambitious, vertically-integrated innovation engine on (and off) Earth," Musk said in the post.
Musk said the merger will combine AI, rockets, space-based internet, direct-to-mobile device communications, and "the world's foremost real-time information and free speech platform", in reference to his social media platform X.
He also said space-based technology will be required to fulfil growing AI power demands.
"Global electricity demand for AI simply cannot be met with terrestrial solutions, even in the near term, without imposing hardship on communities and the environment," Musk said.
"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 numbers: xAI raised funds at a USD20 billion ($30 billion) valuation last month, while SpaceX was set to launch a share sale at a valuation of USD800 billion in December. SpaceX is also planning an IPO that is touted to raise as much as USD50 billion.
What they said: "The capabilities we unlock by making space-based data centers a reality will fund and enable self-growing bases on the Moon, an entire civilization on Mars and ultimately expansion to the Universe," Musk said.
The source: SpaceX
