Manufacturing on the Moon: Inside SpaceX and xAI's Plans
Elon Musk's SpaceX is acquiring his startup xAI in a deal which values the combined entity at approximately US$1.25tn.
The aim of the acquisition is to manufacture AI satellites that operate as solar-powered orbital data centres in space.
The plan aims to address the substantial power and water consumption required for large-scale computing operations.
By relocating these resource-intensive processes to space, the initiative seeks to tap into solar energy at a scale far beyond what terrestrial facilities can achieve.
Current measurements show that Earth intercepts around 173,000 terawatts of solar energy, which represents 10,000 times more energy than the planet currently consumes.
"To harness even a millionth of our Sun's energy would require over a million times more energy than our civilisation currently uses," said Musk as he announced the combination.
"The only logical solution therefore is to transport these resource-intensive efforts to a location with vast power and space. By directly harnessing near-constant solar power with little operating or maintenance costs, these satellites will transform our ability to scale compute.
"My estimate is that, within two to three years, the lowest cost way to generate AI compute will be in space."
Lunar manufacturing
Beyond orbital data centres, Musk says the company has set its sights on establishing scientific and manufacturing operations on the Moon.
Starship, described as the largest and most powerful spacecraft ever made, is set to deliver Starlink satellites to orbit while carrying up to 200 tons per flight.
Once cargo has landed on the Moon, it will be possible to establish "a permanent presence for scientific and manufacturing pursuits," Musk continued.
He added: "Factories on the Moon can take advantage of lunar resources to manufacture satellites and deploy them further into space.
"By using an electromagnetic mass driver and lunar manufacturing, it is possible to put 500 to 1000TW/year of AI satellites into deep space, meaningfully ascend the Kardashev scale and harness a non-trivial percentage of the Sun's power."
The Kardashev scale is used to measure a civilisation's use of energy in the universe.
Humanity is beneath the first level on the scale because it does not use all the available energy on Earth.
He argued that wider deployment of these technologies could unlock unprecedented global abundance, while solar energy could help overcome existing terrestrial energy constraints.
A key factor in making space-based operations economically feasible is the reusability of Starship.
He said: "If you had to throw away an aircraft after every flight, that would be a very expensive flight. If you only have to refuel, then it's the cost of the fuel."
The consolidation continues a pattern across Musk's portfolio.
Of his 10 companies, only two remain outside larger operations: Neuralink and The Boring Company.
xAI originally began as a division of X before becoming a separate, more valuable entity.
It subsequently acquired X in an all-stock transaction, with Musk stating the deal would "combine the data, models, compute, distribution and talent".
