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Pixel_Panda
3h ago
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Musk's SpaceX Absorbs xAI; Adobe Animate Dies; Student Startups Soar

SpaceX acquired xAI in a merger aimed at building space-based data centers, the spaceflight company announced Monday. According to a memo posted on the rocket company's website by CEO Elon Musk, the merger seeks to address the growing power demands of artificial intelligence by creating data centers in space.

Musk stated that current AI advancements rely on large terrestrial data centers, which require significant power and cooling. He argued that global electricity demand for AI cannot be met solely with terrestrial solutions without negatively impacting communities and the environment. The Verge reported that the merger would combine SpaceX and xAI (which also owns X) into one entity. Musk described the new entity as "the most ambitious, vertically-integrated innovation engine on (and off) Earth, with AI, rockets, space-based internet, direct-to-mobile device communications and the worlds foremost real-time information and free speech platform."

The move comes as xAI has faced criticism for allegedly imposing hardship on communities near its terrestrial data centers in Memphis, Tennessee, according to TechCrunch. The company hopes to alleviate these issues with its space-based initiative.

AI-Assisted Journalism

This article was generated with AI assistance, synthesizing reporting from multiple credible news sources. Our editorial team reviews AI-generated content for accuracy.

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