SpaceX acquires xAI in a bid to make orbiting data centers a reality — Musk plans to launch a million tons of satellites annually, targets 1TW/year of space-based compute capacity

SpaceX has acquired xAI to advance Elon Musk's vision of creating orbiting data centers powered by artificial intelligence. The company aims to launch a million tons of satellites annually to achieve 1TW/year of space-based compute capacity. Musk believes that space is the only viable solution for scaling AI data centers due to limitations on Earth. Despite challenges like cosmic radiation and cooling in space, Musk plans to leverage SpaceX's technology, including reusable rockets, to make this ambitious project a reality. However, skeptics, like Nvidia's CEO, raise concerns about the feasibility and potential risks associated with deploying such a massive number of satellites in orbit.