xAI joins SpaceX

Musk’s schtick lately has always been to find a challenging problem, point everyone to it and say “ I will solve it by September “, have the stock shoot up and make money. His first dis that with self driving, then twitter, then xAi, and now robots and data center in space. These last two will last him a decade as these are both challenging problems to solve over night.

The Howard Hughes of our time. Soon enough he will start pissing in milk jugs.

So Elon has more shares when SpaceX IPOs?

So they use a valid and valuable company to hide a giant dumpster fire company. To add to that, their best argument is "AI in space", which has some real "solar roadways" energy to it. I honestly don't know how any SpaceX shareholder could approve this.

Perfect timing to offload that debt onto the bag— I mean shareholders.

We just had an X8.1 CME event, I just want to point out that at any moment we could have an x40 (we had a carrington event already in 1859) or higher event and all those sats at low earth orbit would be fried and start hitting each other, if SpaceX keeps launching more it becomes incredible probable that we might hit the Kessler Syndrome, and we would legit lose access to Space for a WHILE, including all of what satellites entail.

Are we ready for that as a modern society or are we going to start enacting regulation against it? I'm sorry but people wanting internet everywhere does not justify we going back to the dark ages for a decade or more.

Pretty terrible for SpaceX. Of course they paid a crazy inflated price for xAI in an attempt to cash in on the IPO. This just devalues SpaceX and exposes the investors to all the AI bubble risk.

Now he just needs to work in crypto satellites down to users via all the new phones supporting satellite link to SpaceX. I kinda expected that one first. Distributed payment network outside of government control/oversight seems like something he would be in to.

What kind of financial engineering is going on here? Is xAI about to go bankrupt or something?

The next step will be merging SpaceX and Tesla.

Tesla has probably the most valuable shareholders on Earth. Over years of empty promises and meme status, the stock has pretty much purged all the level heads. So it's mostly deluded Elon sycophants giving placing their tithe on the alter of his sci-fi fantasy smoke and mirrors game.

In reality he will be dumping the debt of twitter and xAI (and maybe spacex?) on Tesla shareholders, and buoying that with the added layer of hyper that spaceX brings.

Wait so now SpaceX is the company letting you undress people? Why mix gold and poop? SpaceX plus xAI.

I asked Gemini for a two word summary and it wrote "financial engineering"

> SpaceX has acquired xAI to form the most ambitious, vertically-integrated innovation engine on (and off) Earth, with AI, rockets, space-based internet, direct-to-mobile device communications and the world’s foremost real-time information and free speech platform. This marks not just the next chapter, but the next book in SpaceX and xAI's mission: scaling to make a sentient sun to understand the Universe and extend the light of consciousness to the stars!

I think Elon's taken one too many puffs of hopium

Reminder that space only allows for radiative cooling (since there is no air to absorb heat) so data centers in space are going to have massive cooling panels.

xAI owns Twitter... So now space company owns Twitter? Wtf

Man the real story in a few decades is going to be whether SpaceX was onto such a kille business that it survived being used asma fiscal dumping ground for the losses being incurred by mismanagement everywhere else.

In other news, Kessler Syndrome: https://www.youtube.com/watch?v=8ag6gSzsGbc

What about security?

Don't forget to opt out of SpaceX's product Starlink using your data to train AI: https://www.pcmag.com/news/starlink-wants-your-data-for-ai-m...

Reminder that SpaceX has received an estimated $38 billion in government funding over the years, and all of its returns are going to a small set of private investors.

Socialized losses, privatized profits. As is the American way.

From a technical point of view this doesn't make any sense.

From a finance and accounting point of view this makes everything more cloudy. Which certain types of people really like.

What if enemy or some anti-ai activities or etc attack it? How to protect it? It's just a too easy target.

It's just a dumbest idea ever if Elon truly believes it. I'm pretty sure he doesn't.

It's a CONSTANT stream of new ideas with no payoff at this point.

Hyperloop > Neuralink > Self-Driving Cars > Robotaxi fleets > Personal Robots > Orbital Datacenters > [insert next vibe shift]

At what point do people start to see the ever-shifting goalposts for what they are?

Musk earns a $1tn payout when Tesla hits $8.5tn dollars.

I expect the next step in this series of moves is to turn Tesla into a SPAC & have it acquire SpaceX, bringing its valuation nearer that 8.5t.

Major grift vibes, inventing half-baked reasoning to justify massive valuations. If money wasnt so deeply entwined with politics at this point, this is the sort of news that would launch fraud investigations.

What this tells me - xAI is essentially a failure, though at what level I'm not sure.

Terrible news for SpaceX.

The way I read it, X AI is not really profitable and Elon's creditors/coinvestors asked for something tangible for their money, a.k.a shares in SpaceX, his only business that still has some solid foundation. The rest is emois.

Can we at least agree this is an awesome thing to try?

Way more exciting than spending $70 billion on VR like Meta did when we all just wanted to play games.

Discussion on previous speculation: https://news.ycombinator.com/item?id=46814701

Musk always merges his companies when one is suffering:

Twitter/X in xAI

SolarCity into Tesla

xAI into SpaceC

I am just waiting now for Tesla to be acquired by SpaceC as it has run into issues.

“SpaceX is doing great but I want some of that AI investment money.”

What does Gwynne Shotwell think of this. She seemed level-headed, but is she also batshit insane now by osmosis?

When Elon Musk talks about benefiting humanity, remember that the one time he had unregulated power (DOGE) he used it mostly to cut benefits for poor people, and to push ideological agendas. His only agenda is self-aggrandizement, and this announcement is cover for passing the hot potato of Twitter debt around.

The whole universe was supposed to be turned into paperclips, now it is being turned into graphics cards to produce images of barely legal girls on X.

And Musk keeps grifting about Kardashev 2 civilizations while his rockets do not even reach the moon.

If SpaceX goes public, that will rescue his xAi shares. I wonder how he will rescue his Tesla shares.

xAI to cover X investors, SpaceX to cover xAI, us American public investors to cover SpaceX since it cannot go under for strategic reasons. Ultimate grift.

> the world’s foremost real-time information and free speech platform

What a joke.

I thought this wasn't viable due to cooling requirements - how do you cool massive amounts of compute when the only option is to radiate it into space - nothing to convect it with?

Also, the incredible amount of grift here with the left hand paying the right is scarcely believable. Same story as Tesla buying Solarcity. Board of directors should be ashamed IMO.

hmmmm

Elon Musk is a genius, but he’s a financing genius. Look at the long history he has of false promises supporting financing deals between his companies and you’ll see this for what it is, a cash injection and a lie to justify it. He did the same thing with a fake solar roof demo when Tesla bought the almost bankrupt Solar City. He also shifted resources from Tesla and SpaceX to support X in the early days. Even founding xAI outside of Tesla, when so much of its valuation was built on its AI capabilities, was questionable.

Who got the money? Hahah

When does the market realize this is all just a shell game and the emperor really has no clothes?

We saw this on a much smalelr scale a decade ago when one of Elon's companies (Tesla) acquired a second one of Elon's companies (SolarCity) because it was broke and owed a ton of money to a third one of Elon's companies (SpaceX).

Elon was forced to go through with his impulsive Twitter acquisition by a Delaware court, an acquisition that was not only secured by a bunch of Tesla stock but also a bunch of Qatari and Saudi royal money. He then mismanaged Twitter so badly Fidelity wrote down its value by at least 80% [1].

So what did Elon do? Raised even more questionable foreign money into xAI, diverted GPUs intended for another of his companies (Tesla) into Twitter and then "merged" Twitter into xAI, effectively using other people's money to bail him out from an inevitable margin call on his Tesla stock.

Interestingly, Twitter was reportedly valued at $33 billion in this deal [2], significantly more than the less than $10 billion Fidelity valued Twitter at. Weird, huh? With a competent government, this would be securities fraud that would have you spend the rest of your life in jail. And even with all that, $11 billion was lost on the deal.

So here we are and it's time for the shell game to be played again. Now it's SpaceX's turn to bail out the xAI investors.

And what is the argument for all this? AI data centers in space. Words cannot describe how little sense this makes. Launch costs (even if the Starship launch costs get to their rosy projections), cooling in space, cosmic rays (and the resulting errors) and maintenance. Servers constantly need parts replaced. You can just deorbit the satellite instead but that seems like an expensive way of dealing with a bad SSD or RAM chip.

[1]: https://www.cnn.com/2024/10/02/business/elon-musk-twitter-x-...

[2]: https://www.cnbc.com/2025/03/28/elon-musk-says-xai-has-acqui...

Making a "sentient sun" is the most bald-faced asinine, drug-induced nonsense that should be the complete destruction of all credibility to anyone who said it or typed it or works for anything here.

Now those dumb articles about AI data centers in space from a couple months back make so much more sense.