Musk merges SpaceX and xAI firms, plans for space-based AI data centres

AI Summary
In February 2026, Elon Musk announced the merger of SpaceX and xAI, with plans to build space-based, solar-powered data centers to meet the growing energy demands of artificial intelligence. Musk stated that terrestrial AI power consumption is unsustainable and that space offers the necessary power and space resources. He predicts space-based AI computation will be the most cost-effective method within 2-3 years. The merger consolidates Musk's space, AI, internet, and social media ventures, including SpaceX's rocket programs, xAI's Grok chatbot, and the social media platform X (formerly Twitter). The goal is to harness solar energy in space to power AI development, addressing the immense energy needs of future AI systems.
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