SpaceX Acquires xAI, Musk Envisions AI Operating in Orbit

5 hours ago 19

February 4, 2026 | 02:01 pm

TEMPO.CO, Jakarta - SpaceX, the technology company founded by Elon Musk, has acquired xAI, a startup also owned by Musk, through a stock-only reshuffling involving two of his major companies outside of Tesla.

The acquisition aims to create what Musk describes as the most ambitious vertically integrated innovation machine on Earth and in space. The vision is to build an ecosystem that combines rockets, space-based internet, direct-to-device communications, and a leading real-time global information platform.

This merger is expected to generate unprecedented synergy in the space and digital technology sectors. "We'll have "space-based AI" in the future, a million satellites that operate as orbital data centers," said Elon Musk, as quoted by GSM Arena on Wednesday, February 4, 2026.

Musk also predicts that within the next two to three years, the most cost-effective method for AI computation will be in orbit.

His broader ambition is to elevate human civilization to a Kardashev II level, harnessing solar energy on a massive scale, including in outer space, to support the growing energy demands of AI applications.

SpaceX’s Starship rocket will play a central role in this vision. Each Starship is projected to launch every hour, carrying up to 200 tons per flight. This rapid cadence is intended to send millions of tons of materials into orbit annually, laying the foundation for Musk’s ambitious space-based AI and energy infrastructure.

Read: Why French Prosecutors Raided Elon Musk's X Offices in France

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