Monday, February 2, 2026

SpaceX Acquires xAI to Build a 100GW Orbital Supercomputer

SpaceX Acquires xAI to Build a 100GW Orbital Supercomputer
100 Gigawatts in Orbit: Inside Musk’s Plan to Move AI Data Centers to Space.

In a move that redefines the boundaries of technology and infrastructure, SpaceX has announced the total acquisition of xAI, Elon Musk’s artificial intelligence venture and the creator of the Grok model. This merger aims to solve the single greatest bottleneck in AI development: the global power crisis.

Escaping the Terrestrial Power Crunch

Elon Musk stated that the primary challenge facing AI today is the inability of Earth’s electrical grids to keep pace with the exponential power demands of massive data centers. His solution? Taking AI into orbit.

By relocating AI processing to space, data centers can bypass the limitations of the terrestrial grid and tap directly into infinite solar energy. This strategy aligns perfectly with SpaceX's recent filing to launch an additional one million satellites into orbit.

The "Starlink V3" and the 100GW Vision

To achieve this orbital infrastructure, SpaceX plans to deploy Starlink Version 3 later this year. This next-generation satellite is designed to be 20 times more compact than current models, significantly increasing the payload capacity per launch.

Musk’s ambitious roadmap includes:

  • Hourly Launches: Achieving a launch cadence of once per hour to build the necessary orbital density.

  • Massive Scale: Aiming to transport one million tons of hardware into orbit annually.

  • Global Compute Power: Creating a distributed orbital data center capable of 100 Gigawatts (GW) of AI processing power, operating autonomously without the need for traditional maintenance.

The Trillion-Dollar Valuation

While the official deal value remains undisclosed, industry reports suggest staggering figures:

  • The Information reports that SpaceX acquired xAI at a valuation of $250 billion.

  • Bloomberg estimates that the newly merged entity is targeting an IPO valuation of $1.25 trillion, which would make it one of the most valuable companies in history.

A major problem with AI chips (such as Nvidia Blackwell) is the immense heat generated. In space, where temperatures are near absolute zero (2.7 Kelvin) in the shadows, radiative cooling technology allows the chips to run at peak speeds without the complex water cooling systems found on Earth.

Space data centers are completely free from the jurisdiction of any single nation, enabling xAI to provide AI computing services globally without worrying about data residency laws or geopolitical conflicts on the ground.

This deal would not have been possible without Starship, a 100% reusable spacecraft that reduces the cost of sending one kilogram of ballast into space to just tens of dollars, making the deployment of "millions of tons" of hardware financially feasible.

The integration of the X platform means Grok will have access to real-time data from users worldwide and process it on its own "space cloud," making it the AI ​​with the lowest latency for responding to current global events.

 

Solar-Powered Intelligence: Inside SpaceX Plan for a Million-Satellite AI Constellation. 

 

Source: xAI 

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