Musk is merging SpaceX and xAI and planning space-based AI data centers

According to Musk, solar-powered and space-based data centers are the only way to meet AI’s growing energy needs.

Elon Musk’s SpaceX has acquired his AI company xAI as part of an ambitious plan to build space-based data centers to power the future of artificial intelligence.

The billionaire, who is also Tesla’s CEO, announced the merger in a statement on SpaceX’s website on Tuesday.

Musk said the merger will help answer the emerging question of how to meet the power-hungry demands of artificial intelligence.

AI demand will require “immense amounts of power and cooling” that are unsustainable on Earth without “imposing hardships on communities and the environment,” he said.

Musk said space-based data centers that harness the power of the sun are the only long-term solution.

“In the long term, space-based AI is obviously the only way…