Musk Folds xAI Into SpaceX, Cites Limits on Earth-Based AI Infrastructure

In brief

• SpaceX has acquired xAI, bringing Musk’s artificial intelligence efforts directly under the aerospace company.
• Musk argues that electricity demand and cooling requirements are limiting the growth of Earth-based AI data centers.
• The plan relies on Starship to deploy large-scale orbital data centers powered by near-constant solar energy.