Orbiting AI: Musk’s SpaceX-xAI Merger Sets Sights on Space-Based Data Centers

Elon Musk is merging SpaceX with xAI to push for orbital AI data centers, arguing outer space offers vast solar power and cooling while avoiding terrestrial land and water constraints. Google and others are eyeing orbital compute with test concepts, and moves by OpenAI-related groups hint at broader industry interest. Experts caution that energy needs, water usage, regulatory hurdles, and uncertain timelines could push orbital data centers far into the future, even as falling launch costs improve feasibility and Musk has a history of optimistic timelines.