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SpaceX Absorbs xAI and Pitches Solar-Powered Orbital Data Centers

The deal positions Musk to bankroll xAI via SpaceX to pursue orbital compute at Bloomberg-reported trillion-dollar scale.

Overview

  • SpaceX has filed with the FCC to operate up to one million solar-powered satellites as orbital data centers, with separate ITU coordination also required.
  • Musk says space-based compute could become the cheapest option within two to three years, citing near-constant solar energy and passive cooling in space.
  • Starship is slated to enable mass deployment, with Musk floating hourly launches and “a million tonnes of satellites annually,” even as full operational capability remains unproven.
  • Bloomberg and other outlets report a combined valuation near $1.25 trillion and a possible 2026 IPO, with US media indicating a potential June listing targeting about $50 billion.
  • Safety and oversight concerns are rising, as SpaceX disclosed 148,696 collision-avoidance maneuvers in six months and regulators review spectrum use and xAI’s Grok after harmful image outputs.