Elon Musk merges SpaceX with his AI startup xAI, creating the world's most valuable private company with plans to deploy AI data centers in space to meet explosive computing demands.

Elon Musk's SpaceX has filed an FCC application to launch up to 1 million solar-powered satellites to create orbital data centers, claiming this is the most cost and energy-efficient way to meet growing AI computing demand. The satellites would operate in low-Earth orbit and serve billions of users globally.

Elon Musk highlights electricity generation as primary constraint on AI progress, proposing solar-powered orbital infrastructure as lowest-cost solution for large-scale AI systems.