SpaceX has formally acquired another one of Elon Musk’s companies, xAi, the space company announced on Monday afternoon.
“SpaceX has acquired xAI to form the most ambitious, vertically-integrated innovation engine on (and off) Earth, with AI, rockets, space-based internet, direct-to-mobile device communications and the world’s foremost real-time information and free speech platform,” the company said. “This marks not just the next chapter, but the next book in SpaceX and xAI’s mission: scaling to make a sentient sun to understand the Universe and extend the light of consciousness to the stars!”
The merging of what is arguably Musk’s most successful company, SpaceX, with the more speculative xAI venture is a risk. Founded in 2023, xAI’s main products are the generative AI chatbot, Grok, and the social media site X, formerly known as Twitter. The company aims to compete with OpenAI and other artificial intelligence firms. However, Grok has been controversial, including the sexualization of women and children through AI-generated images, as has Musk’s management of Twitter.
Vertically integrating AI and space
There can be no question that the merger of SpaceX—the world’s premiere spaceflight company—and the artificial intelligence firm offer potential strategic advances. Musk strongly believes that artificial intelligence is central to humanity’s future and wants to be among those leading in its development. With this merger, he plans to use SpaceX’s deep expertise in rapid launch and satellite manufacturing and management to deploy a constellation of up to 1 million orbital data centers. This will provide the backbone of computing power needed to support xAI’s operations.
Musk’s plan for the merged companies is predicated on several assumptions, including that AI is not a bubble, but rather a technology that will be fully embraced in the future; that orbital data centers are cost-competitive compared to ground-based data centers; and that compute is the essential roadblock that must be solved for widespread adoption of AI by society.