TechCrunch • 1/31/2026 – 2/3/2026

Elon Musk’s SpaceX has officially acquired xAI, Musk's artificial intelligence company, in a deal that creates a combined entity valued at approximately $1.25 trillion. This merger aims to establish a vertically-integrated innovation engine that integrates artificial intelligence, rocket technology, space-based internet, direct-to-mobile communications, and a platform for real-time information and free speech. Musk has described this merger as a significant advancement in their mission to develop a "sentient sun" to enhance understanding of the universe and extend consciousness beyond Earth (Electrek, The Verge). In conjunction with the merger, SpaceX has submitted a request to the Federal Communications Commission (FCC) for approval to launch a constellation of one million solar-powered satellites. These satellites are intended to function as orbital data centers, which will enhance the capabilities of artificial intelligence and support SpaceX's broader vision of advancing humanity towards a Kardashev II civilization, capable of fully utilizing solar energy (TechCrunch, Scientific American). This initiative reflects a growing trend in the tech industry to leverage space for data processing and connectivity, paralleling the development of the internet in the late 20th century (BBC). The proposed satellite network is expected to reshape how energy from the sun is harnessed and utilized, addressing global challenges such as climate change and energy scarcity. This development is seen as a leap in satellite technology and underscores the importance of renewable energy in future societal development (TechCrunch, Electrek). The merger and the satellite project together signify a shift towards a more interconnected and data-driven future, with implications for communication and information access similar to those seen during the rise of the internet (Electrek, BBC). Overall, the merger of SpaceX and xAI, along with the ambitious satellite initiative, highlights the intersection of space exploration and digital innovation. This development marks a significant step in SpaceX's ongoing efforts to expand its technological infrastructure and satellite internet services, positioning the company at the forefront of advancements in both aerospace and artificial intelligence (Electrek, The Verge).
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