Elon Musk says his AI company xAI is joining SpaceX, and he has a very big idea about taking artificial intelligence into space.

xAI

• SpaceX buys xAI to run AI in space with solar-powered satellites
• Musk: Starship to launch thousands of satellites for AI and Starlink services
• Running AI in space could be cheaper than on Earth within two to three years

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In a press note shared this week, Elon Musk said SpaceX has acquired xAI. The move brings Musk’s AI work directly into his space business, alongside rockets, satellites, and Starlink internet services.

Musk said the reason is simple. AI needs a huge amount of electricity, and running all of it on Earth is becoming a problem. Data centers already use a lot of power and water, and Musk believes this demand will only grow as AI becomes more common.

His answer is to move AI into space.

According to Musk, space offers two things Earth cannot. Endless sunlight and a lot of empty room. He says satellites placed in orbit can run on solar power almost all the time and do not need air cooling or large buildings. These satellites would act like floating data centers, handling AI work from above the planet.

To make this happen, Musk is betting on Starship, SpaceX’s new heavy rocket. He said Starship will be able to carry much heavier loads than current rockets and launch much more often. This would allow SpaceX to send thousands, and eventually millions, of satellites into orbit.

Some of these satellites would also support Starlink and future phone services that work directly from space, giving mobile coverage even in remote areas.

Musk claims that within two to three years, running AI in space could become cheaper than running it on Earth. If that happens, companies could train faster AI systems without putting more strain on power grids at home.

He also connected this plan to SpaceX’s long-term goals. The same rockets and systems could be used to send supplies to the Moon and Mars. Over time, Musk imagines factories on the Moon that build satellites using local materials, cutting down the need for launches from Earth.

Much of this vision is still far from reality and raises questions about cost, safety, and space traffic. But the message from Musk is clear. If AI is going to grow without limits, he believes it cannot stay on Earth forever.

And as usual, Musk is thinking far beyond the planet we live on today.