Musk bets on space-based AI by merging SpaceX and xAI to power orbital data centers

Elon Musk announced a SpaceX–xAI merger to pursue space-based data centers for AI at scale, arguing that AI growth will require orbiting infrastructure. The move pairs a profitable SpaceX with cash-burning xAI, which is spending heavily to build data centers, while critics point to enormous power, cooling, and communications costs and question investor appetite as Musk’s broader ventures, including Tesla, accompany the plan.