Elon Musk’s SpaceX Acquires Grok Parent xAI

The CEO said that the demand for electricity from AI cannot be met by terrestrial solutions, mandating the need for space-based AI.
In this photo illustration, the logo of SpaceX is displayed on a smartphone screen.
In this photo illustration, the logo of SpaceX is displayed on a smartphone screen.(Photo Illustration by VCG/VCG via Getty Images)
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Anan Ashraf·Stocktwits
Published Feb 02, 2026   |   4:58 PM EST
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SpaceX CEO Elon Musk said on Monday that the company has acquired his AI startup xAI to accelerate space-based artificial intelligence.

Musk said that the demand for electricity from AI cannot be met by terrestrial solutions, mandating the need for space-based AI. The CEO is now looking to harness solar energy from space to power AI goals.

“Launching a constellation of a million satellites that operate as orbital data centers is a first step towards becoming a Kardashev II-level civilization, one that can harness the Sun’s full power, while supporting AI-driven applications for billions of people today and ensuring humanity’s multi-planetary future,” Musk said in a statement. 

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