Musk Pushes Space-Based Data Centers as xAI Burns $1B a Month

[mendez]

The SpaceX–xAI merger unites two companies facing very different financial pressures. According to Bloomberg, xAI is burning roughly $1 billion per month, while SpaceX derives as much as 80% of its revenue from Starlink satellite launches.

Musk said the combined entity will rely on a “constant stream” of satellites to build data centers in orbit, a strategy that could lock in long-term demand for SpaceX launches. Satellites must also be de-orbited every five years under FCC rules, creating a recurring replacement cycle.

The plan could provide xAI with scalable infrastructure while reinforcing SpaceX’s revenue loop — even as critics point out that xAI’s existing data centers have already drawn scrutiny over their local environmental impact.

[JanEmil]

Sounds wild. But if someone can do it I think Muck the man.

[Revenant]

That’s vertical integration on hard mode.

[Capybara_Capybara]

SpaceX funding xAI while xAI feeds SpaceX demand is wild.

[The_Walking_Dead]

Satellites as recurring AI infrastructure is next-level thinking.

[bred]

Risky, expensive, but brutally efficient if it works.