SpaceX and xAI Join Forces to Take Artificial Intelligence Beyond Earth

Elon Musk unites rockets, satellites, and AI in a bold move to build the future of intelligence in space.

Elon Musk has taken a major step toward his vision of space-based artificial intelligence by merging SpaceX with his AI company, xAI. The deal brings together rockets, satellites, and advanced AI systems under one roof, as SpaceX moves closer to a potential public listing later this year.

The merger was confirmed on Monday through a statement on SpaceX’s website. Under the agreement, SpaceX will take control of xAI’s key assets, including the Grok chatbot and the social media platform X. Together, the companies aim to tightly connect AI development with space launch technology and satellite networks.

According to the statement, the merger is driven by a long-term plan to build data centers and power systems in space, an idea rooted in the growing limits of Earth-based infrastructure. Training and running advanced AI models requires enormous amounts of electricity and cooling, which is placing increasing strain on land, communities, and the environment.

“In the long term, space-based AI is obviously the only way to scale,” the companies said in the statement, highlighting why space is seen as the next frontier for AI growth.

The move reflects Musk’s broader strategy of linking his businesses. Earlier this year, xAI acquired X in an all-share deal, while Tesla recently announced a $2 billion investment in xAI.

SpaceX told investors in December that it expects its valuation to reach around $800 billion, supported by strong demand for satellite launches and government contracts. Meanwhile, xAI recently raised $20 billion in new funding, valuing the company at $230 billion. Together, the merger signals a future where artificial intelligence doesn’t just run on Earth, but operates far beyond it.