Elon Musk-owned social networking platform X (formerly Twitter) is now owned by SpaceX. This development comes after SpaceX acquired xAI, Musk’s artificial intelligence company focused on AI labs, models, and data centres.
Musk merged xAI and X in May 2025.
SpaceX–xAI merger aims to create integrated innovation engine
According to SpaceX, the merger of xAI with SpaceX will create a “vertically integrated innovation engine on (and off) Earth,” combining artificial intelligence, rockets, space-based internet, and direct-to-mobile device communications.
xAI and Grok integration with X
xAI is currently best known for its chatbot Grok, which is already integrated into X. SpaceX, which focuses on space missions, will now combine its capabilities with xAI’s AI technologies.
The merger of the AI company with SpaceX is expected to allow Musk to build data centres in space.
SpaceX seeks approval for orbital data centre
SpaceX recently filed an application with the US Federal Communications Commission (FCC) to create an “orbital data centre” by launching a million satellites.
Musk on AI’s growing power and cooling needs
Musk said advancements in artificial intelligence are dependent on increasingly large terrestrial data centres that require immense amounts of power and cooling. He added that space-based AI could make it possible to harness the Sun’s energy.
“The only logical solution, therefore, is to transport these resource-intensive efforts to a location with vast power and space. I mean, space is called ‘space’ for a reason,” Musk said.
Near-constant solar power in space
Musk said space offers near-constant solar power with relatively low operating and maintenance costs, and that satellites will transform the ability to scale computing.
Vision of orbital AI data centres
“Launching a constellation of a million satellites that operate as orbital data centres is a first step towards becoming a Kardashev II-level civilisation—one that can harness the Sun’s full power—while supporting AI-driven applications for billions of people today and ensuring humanity’s multi-planetary future,” Musk wrote.
AI compute could shift to space in coming years
Musk said that within the next two to three years, the lowest-cost way to generate AI compute could be in space, enabling cost-efficient training of AI models and data processing at unprecedented speeds and scale.
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