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Musk's SpaceX Absorbs xAI, Eyes Space-Based AI

Elon Musk's SpaceX acquired his artificial intelligence startup, xAI, in a move to build space-based data centers, the spaceflight company announced Monday. The merger aims to address the growing energy demands of artificial intelligence by establishing data centers in space, according to a memo posted on the SpaceX website by Musk, who is also the CEO of Tesla.

Musk stated that current advancements in AI rely on large terrestrial data centers, which require immense amounts of power and cooling. He argued that global electricity demand for AI cannot be met with terrestrial solutions without negatively impacting communities and the environment. "Global electricity demand for AI simply cannot be met with terrestrial solutions, even in the near term, without imposing hardship on communities and the environment," Musk wrote.

The acquisition positions SpaceX as the world's most valuable private company, according to TechCrunch. The plan to build data centers in space reflects Musk's focus on addressing the limitations of terrestrial infrastructure for AI development. However, xAI has faced accusations of imposing hardship on communities near its data centers in Memphis, Tennessee, according to TechCrunch.

The fifth flight test of SpaceX's Starship took place on October 13, 2024, in Boca Chica, Texas, according to Al Jazeera.

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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