According to The Rundown AI, SpaceX has acquired xAI with the goal of moving AI data centers off Earth and into space. Elon Musk's thesis is that terrestrial power limitations cannot sustain the exponential growth of AI compute, so SpaceX plans to deploy one million satellites as orbital compute nodes. The strategy involves Starship launches every hour, each delivering 200 tons of cargo, with a projected 100 gigawatts of AI capacity added annually. Musk predicts space-based compute will become more cost-effective than traditional data centers within two to three years. The long-term vision includes Moon factories, Mars settlements, and leveraging solar energy on a massive scale. With competitors like Google's Project Suncatcher also exploring space-based compute, SpaceX is uniquely positioned to commercialize this emerging AI infrastructure, according to The Rundown AI.