Musk said the most cost-effective way to generate AI computing power could be in space within the next two to three years, as major technology companies pursue artificial general intelligence—a theoretical milestone in which machines could surpass human cognitive abilities, News.Az reports, citing Reuters.
In premarket trading, shares of Rocket Lab and Planet Labs rose by about 3%. AST SpaceMobile gained roughly 2.4%, while Globalstar added around 1.3%. Intuitive Machines advanced 2.1%, and Redwire jumped nearly 4.9%.
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Musk said on Monday that the merger is intended to create a vertically integrated and ambitious innovation powerhouse, combining artificial intelligence, rocket technology, space-based internet services, direct-to-mobile communications, and a platform for real-time information and free speech. xAI was last valued at $230 billion in November, according to The Wall Street Journal.
Global investment in space technology is expected to rise further this year, driven by increased government spending on defense-related satellite systems and private-sector investment in launch capacity, according to investment firm Seraphim Space.
SpaceX has also recently sought permission to launch a constellation of up to one million satellites designed to orbit Earth and use solar power to support AI data centers. The move highlights the growing demand from technology companies as terrestrial data centers strain electricity and water resources needed for cooling.
