Elon Musk unveils plan for AI satellite factory on Moon

Elon Musk has revealed his ambitious new plans for his artificial intelligence company xAI.

He stated that he is planning to build a satellite manufacturing factory on the moon.

A structured proposal of the plan was shared in a meeting with all employees, where it was stated that the lunar facility is built to produce AI-powered satellites that will be launched into space with the help of a massive catapult system known as a “mass driver.”

As per meeting reports, Musk stated that the project is of high significance for xAI’s long-term growth.

He told staff: “You have to go to the moon,” stressing that space-based infrastructure will help the company to generate far more computing power than its competitors.

The satellites will support advanced AI systems, potentially operating data centers beyond Earth’s constraints, including energy limitations and rising electricity costs.

This builds upon Musk's latest announcement stating that X AI and SpaceX will merge, which has the intention of simplifying the plan for making AI data centers in orbit. SpaceX is also reportedly making plans for an eventual public offering as early as this June, which could redefine Musk's entire business empire.

However, there are no additional details on how the facility will be constructed. There’s also no information regarding the funding of the project.

Musk announced this plan at a highly critical time, with several co-founders recently departing the company.

At least half of the original founding team has not exited, though the departures have been described as amicable.

Musk’s plan to build a satellite factory on the Moon also shifts from his long-stated goal of colonizing Mars.

He recently suggested that establishing a self-sustaining city on the moon could be achieved quickly than a Martian settlement.