SpaceX has officially integrated xAI into its business operations, to create a vertically integrated innovation engine. The core thesis is that Earth’s resources cannot meet the massive compute demand of AI data centers. To solve this SpaceX plans to move AI compute into orbit.

SpaceX wants to build space based data centers, aiming to launch a constellation of a million orbital data centers. These satellites will harness constant solar energy, bypassing terrestrial power constraints and cooling issues.

Taking advantage of the Starship launch system, the aim is to deliver a millions of tons of payload into orbit annually. Within 2 to 3 years, SpaceX believes that orbital based AI will be the most cost effective compute available. The plan involves adding roughly 100 gigawatts of AI compute capacity per year, eventually scaling to a terawatt.

The plan extends far beyond Earth’s orbit. By establishing lunar bases and utilizing electromagnetic mass drivers on the moon, the company intends to manufacture and launch enough satellites to harness solar energy. This transition is a key step in progressing towards a Kardashev-II level civilization, a society that is capable of harnessing the power of its star, expanding and propagating human consciousness throughout the universe.