SpaceX Acquires xAI Pursues Orbital Data Centers

At the start of this month SpaceX acquired Elon Musk's AI venture xAI and filed FCC plans for a proposed orbital data center satellite constellation. Analysts in a Via Satellite roundtable say the move reframes SpaceX toward AI infrastructure while flagging major technical, economic, and regulatory hurdles, including xAI's reported $1 billion monthly burn and uncertain cost competitiveness versus terrestrial data centers. The deal may affect SpaceX's IPO narrative.