SpaceX, the space corporations led by Elon Musk, has decided to acquire Musk's artificial intelligence (AI) startup xAI. xAI is set to become a wholly owned subsidiary of SpaceX. As SpaceX prepares for an initial public offering (IPO) in the second half of this year, a mega space AI data center corporations valued at $1.25 trillion (about 1,810 trillion won) is being born.
On the 2nd (local time), SpaceX said in a statement under Musk's name as chief executive officer (CEO) that it "will acquire xAI to build the most ambitious and vertically integrated innovation engine on and off Earth, encompassing artificial intelligence, rockets, space-based internet, direct communication with mobile devices, and a world-class real-time information platform."
Before the merger, the corporations were valued at $800 billion for SpaceX and $230 billion for xAI. The Wall Street Journal (WSJ) reported, "Musk's rocket company and artificial intelligence company will be under one roof," adding, "The corporations value is estimated at $1.25 trillion." The per-share price is estimated to be $527.
Musk, the CEO, appears set to pursue the construction of a "space data center" powered by solar energy. He said, "The development of AI relies on large-scale terrestrial data centers that require massive electricity and cooling infrastructure," adding, "In the long term, it is clear that space-based AI is the only way to scale."
Musk, the CEO, said, "In the long term, space-based AI is the only way to scale," adding, "Global electricity demand for AI cannot be met in the near future with terrestrial solutions without burdening communities and the environment."
SpaceX previously applied to the U.S. Federal Communications Commission (FCC) to launch 1 million satellites, saying it would build a space data center. SpaceX explained that if it launches satellites with computing capacity of 100 kW (kilowatts) per ton at 1 million tons per year, it can add 100 GW (gigawatts) annually, and ultimately raise computing capacity to 1 TW (terawatt) per year.
Musk, the CEO, said that after securing capabilities and funding through space-based data centers, the plan is to deploy them to a moon base, a Mars base, and space expansion. He said, "The mission of the two companies is to create a 'sentient sun' that can help us understand space and extend the light of consciousness to the stars." The "sentient sun" is interpreted as AI based on space data centers powered by solar power.
However, Reuters noted that because Musk concurrently serves as CEO of several corporations and due to issues such as technological monopolies, regulators may intervene in the acquisition.