WASHINGTON: Tech billionaire Elon Musk has unveiled plans for his artificial intelligence company, xAI, to establish a satellite manufacturing facility on the Moon as part of its long-term expansion strategy.
According to reports from an internal company meeting, Musk shared a structured proposal outlining the development of a lunar-based factory that would produce AI-powered satellites. The satellites would be launched into space using a large-scale electromagnetic catapult system, commonly referred to as a “mass driver.”
Addressing employees, Musk described the project as critical for xAI’s future growth. “You have to go to the Moon,” he said, underscoring the importance of space-based infrastructure in boosting the company’s computing capabilities.
The proposed satellites are expected to support advanced artificial intelligence systems, including the potential deployment of data centres in orbit. Such facilities could operate beyond Earth’s limitations, particularly constraints related to energy supply and rising electricity costs.
The announcement follows Musk’s recent statement that xAI and SpaceX would merge operations to streamline efforts aimed at building AI data centres in space. Media reports suggest SpaceX is also considering a public offering as early as June, a move that could significantly reshape Musk’s business portfolio.
However, no further details have been disclosed regarding the construction timeline, funding arrangements or technical feasibility of the lunar facility.
The plan comes at a time when several co-founders have departed xAI, although the exits have been described as amicable. Despite the changes in leadership, Musk has reiterated his commitment to expanding the company’s presence in space.
The proposal also signals a shift in focus from Musk’s longstanding ambition of colonising Mars. He has recently suggested that establishing a self-sustaining settlement on the Moon could be achieved more rapidly than building a city on the Red Planet.