Elon Musk's SpaceX has taken over his artificial intelligence company xAI in a merger aimed at deploying space-based data centres, according to a statement.
The acquisition combines SpaceX's rocket capabilities with xAI's technology to create what Musk described as "the most ambitious, vertically integrated innovation engine on (and off) Earth."
The merger comes as funding pressures begin to emerge around the rapid expansion of AI infrastructure by major technology companies.
Musk said SpaceX plans to launch a constellation of satellites that would function as orbital data centres, using solar power in space to meet the growing electricity demands of AI computing.
He said those needs cannot be met on Earth "without imposing hardship on communities and the environment."
"By directly harnessing near-constant solar power with little operating or maintenance costs, these satellites will transform our ability to scale compute," Musk wrote in the announcement.
Expanding global reach
SpaceX aims to deploy one million satellites operating as data centres using its Starship rocket, which the company said is expected to achieve launch rates of one flight per hour, carrying up to 200 tonnes of payload.
The announcement did not disclose the financial terms of the acquisition or provide a timeline for the initial deployment of the satellite data centres.
The merger further integrates Musk's businesses, following his earlier move to merge xAI with X after acquiring the social media platform in late 2022.
xAI operates the Grok chatbot and has been a central part of Musk's push into artificial intelligence.
The combined company is expected to pool computing resources and technical expertise as Musk pursues his vision of placing large-scale AI computing infrastructure in space.
