Elon Musk reportedly told xAI employees this week that the company’s future may lie on the moon — literally. During an all-hands meeting, Musk described plans for a lunar manufacturing facility that would build AI-powered satellites and launch them into orbit using a giant catapult. The goal? To unlock computing power at a scale no competitor could match.

Musk framed the idea as a necessary leap forward in the AI race, arguing that whoever moves fastest in breakthrough technologies becomes the leader. While the vision is ambitious, questions remain about execution. Neither the logistics of constructing a moon base nor the integration of the newly merged xAI-SpaceX structure were clearly addressed. Still, Musk’s message was clear: the path to AI dominance may run through space.