Musk Merges SpaceX, xAI, and X in AI-Compute Pivot

As part of the announcement, Musk discusses the need for a new constellation of satellites designed for AI compute: My estimate is that within 2 to 3 years, the lowest cost way to generate AI compute will be in space. This cost-efficiency alone will enable innovative companies to forge ahead in training their AI models and processing data at unprecedented speeds and scales, accelerating breakthroughs in our understanding of physics and invention of technologies to benefit humanity. This new constellation will build upon the well-established space sustainability design and operational strategies, including end-of-life disposal, that have proven successful for SpaceX's existing broadband satellite systems.

He also claims that: The capabilities we unlock by making space-based data centers a reality will fund and enable self-growing bases on the Moon, an entire civilization on Mars and ultimately expansion to the Universe. The merger follows SpaceX's filing with the FCC last week to get approval to launch a constellation of as many as one million data center satellites orbiting Earth. The deal also brings SpaceX and X, which is under intense scrutiny and an investigation in the EU because of the nonconsensual sexualized deepfakes generated by Grok, into one company.

The combined company of SpaceX and xAI has a valuation of $1.25 trillion, and SpaceX still plans to IPO later this year, Bloomberg reports. The deal between SpaceX and xAI was completed on Monday, according to CNBC.