Sunday, July 26, 2026
Technology

Elon Musk is merging SpaceX and xAI to build data centers in space — or so he says

On Monday, Elon Musk announced that he was merging two of his companies, SpaceX and xAI, in a deal said to be worth $1.25 trillion. The reason, Musk said in an announcement, was that in order for AI to grow, it needed to go to space. AI relies on "large terrestrial data centers" that run […]

Elon Musk is merging SpaceX and xAI to build data centers in space — or so he says
Image: The Verge

On Monday, Elon Musk announced that he was merging two of his companies, SpaceX and xAI, in a deal said to be worth $1.25 trillion. The reason, Musk said in an announcement, was that in order for AI to grow, it needed to go to space.

AI relies on "large terrestrial data centers" that run on "immense amounts of power and cooling," he said, which comes at great expense to the environment and community opposition. The solution: data centers in space. "In the long term, space-based AI is obviously the only way to scale," Musk said.

Musk isn't the only one looking to launch data centers into orbit. Google has Project Suncatcher to build solar- …

Read the full story at The Verge.

Originally published at The Verge

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