Elon Musk’s SpaceX is acquiring xAI with big plans for data centers in space

Two of Elon Musk’s companies are merging to build data centers in space. According to a post on the SpaceX website. The rocket and satellite company has acquired xAI, Musk’s artificial intelligence company, which also owns the social media platform X (formerly Twitter).

In the post, Musk said the combined company is “the most ambitious, vertically integrated innovation engine on Earth (and beyond), with artificial intelligence, rocketry, space-based internet, direct mobile communications, and the most important platform for real-time information and freedom of expression in the world.”

SpaceX is planning a public offering, and the acquisition, the largest in history, could push Musk’s company’s value to $1.5 trillion, according to Bloomberg, which was first to report the deal. New York Times The value is estimated to be closer to a trillion dollars.

In the post, Musk cited concerns about terrestrial data centers, including its own Huge electricity needs “The hardships it imposes on societies and the environment.” He said the acquisition is part of a plan to use solar energy to power data centers and space facilities that will train artificial intelligence models and advance scientific breakthroughs.

“My estimate is that within two to three years, it will be the most cost-effective way to create AI computing in space,” Musk said.

A SpaceX representative did not immediately respond to a request for comment.

SpaceX newly Promised gigabit internet speeds from space using its V3 Starlink satellites.