Momentum to Accelerate 'Space Data Center' Vision
"Building a Vertically Integrated Innovation Engine Encompassing Earth and Beyond"
SpaceX, the space company led by Elon Musk, CEO of Tesla, has announced that it will acquire the artificial intelligence (AI) company xAI. If the deal is completed, the combined entity's corporate value is expected to reach approximately $1.25 trillion (about 1,815 trillion won). Through this acquisition, CEO Musk will gain the momentum to fully pursue his vision of a space-based data center.
On February 2 (local time), SpaceX announced the acquisition of xAI through a statement by CEO Musk published on its website. In the statement, CEO Musk declared that the merger of the two companies would "build the most ambitious vertically integrated innovation engine, encompassing not only Earth but also beyond our planet." Bloomberg previously reported, citing sources, that SpaceX and xAI had informed some investors of these plans.
This deal will bring together two of the world’s largest unlisted companies. According to Reuters, citing sources, SpaceX and xAI were valued at $1 trillion and $250 billion, respectively, in this transaction. Bloomberg, also quoting sources, reported that the share price of the integrated entity is expected to be about $527 per share, with a total corporate value reaching $1.25 trillion.
xAI raised funds last November at a valuation of $230 billion. SpaceX sold insider shares at an internal valuation of about $800 billion in December last year. SpaceX is planning to go public within this year. However, Reuters noted that since CEO Musk holds multiple CEO positions across various companies, regulatory authorities may intervene in the acquisition due to concerns about technological monopoly and other issues.
Recently, Bloomberg and other outlets reported that SpaceX was considering a merger with either xAI or the electric vehicle company Tesla. However, merging with the unlisted xAI is procedurally easier than merging with the listed Tesla, which appears to have influenced the decision. In 2022, CEO Musk acquired Twitter, renamed it X, and subsequently merged it with xAI for $33 billion.
If SpaceX and xAI merge, CEO Musk will be able to further realize his vision of building a space-based data center. In his statement, he explained that terrestrial data centers cannot meet the global power demands required for AI, and that, in the long run, the only way to scale AI is through space-based technology. He added that utilizing solar energy in space is a groundbreaking method to expand the computing resources needed for AI.
He stated that if satellites with a computational capacity of 100 kW per ton are launched at a rate of 1 million tons per year, it would add 100 GW of AI computing capacity annually. Ultimately, he said, the capacity could be increased to 1 TW (terawatt) per year. He also predicted that within two to three years, the most cost-effective way to implement AI computing would be in space.
He further revealed plans to use the capabilities and funds secured through the realization of space-based data centers for future projects such as lunar bases, Mars bases, and space expansion.
On January 30, SpaceX submitted an application to the U.S. Federal Communications Commission (FCC) seeking permission to launch 1 million satellites to build space data centers in Earth's orbit.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
