SpaceX and xAI Join Forces in Elon Musk’s Plan to Build AI Data Centers in Space

The merger between xAI and SpaceX has increased investor interest in Musk’s long-term plans. It shows how he may combine launch systems, satellite networks, and AI platforms into one unified ecosystem.

SpaceX is reportedly preparing for a possible IPO valued at up to $1.5 trillion. At the same time, the company has applied for permission to launch up to one million solar-powered satellites designed to function as orbital data centers.

These satellites would be connected through optical links, creating a massive computing network in space. If approved, the system would be far larger than the current Starlink network.

ALSO READ: U.S. Downs Iranian Drone Near Aircraft Carrier

Experts React: Optimism and Caution

Some industry specialists believe space-based computing is no longer science fiction. David Ariosto, founder of The Space Agency, says Musk has already demonstrated success in multiple technological fields.

Armand Musey of Summit Ridge Group says it is still difficult to predict whether such projects can be financially viable. Many technical details remain unclear, making cost estimates unreliable.

Economic Potential and Uncertainty

Supporters argue that data centers in space could eventually be cheaper than those on Earth. Constant solar energy and natural heat dissipation in space may reduce operating costs.

Despite this, most analysts agree that commercial success is still years away. The technology involves major risks and large upfront investments.

Musey describes the project as partly a “bet on Elon,” noting that Musk’s past achievements make investors willing to take risks that would otherwise seem unrealistic.