Elon Musk merges SpaceX and xAI firms for space-based AI data centers.

Elon Musk’s SpaceX has acquired his AI company xAI to develop space-based data centers to meet the energy demands of artificial intelligence, which Musk believes are unsustainable on Earth. Musk stated that space-based AI is the only long-term solution due to the immense power needed, predicting it will be the most cost-effective way within the next 2 to 3 years. The merger will combine Musk’s various projects under one roof and aims to launch a million satellites through SpaceX’s Starship rocket program, boosting Starlink’s satellite-based internet service. Other tech CEOs like Jeff Bezos and Google are also exploring solar-powered space-based data centers as a solution to AI’s energy needs.

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