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SpaceX and xAI Join Forces for $1.25 Trillion Deal

2/8/2026

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Story summary
  • SpaceX plans to merge with Elon Musk's artificial intelligence company xAI in a $1.25 trillion deal to develop orbital data centers.
  • Musk aims to boost satellite launches and projects that space could yield 1 terawatt of compute power annually.
  • The effort faces space debris and maintenance challenges, though it could harness solar energy.
  • Google and Nvidia-backed Starcloud are exploring space-based data centers that could expand AI services beyond Earth.