Elon Musk pivots xAI to natural gas, abandons terrestrial solar

Elon Musk's xAI is harnessing unregulated natural gas turbines to fuel its data centers and intends to acquire an additional $2.8 billion worth, which contradicts Tesla's vision for a solar-powered economy. The SpaceX IPO filing indicates that xAI has invested $697 million in Tesla Megapacks but has not made significant purchases of solar panels. SpaceX argues that space-based solar technology is more effective, claiming that such arrays can produce over five times the energy of those on Earth due to constant sunlight. Musk's ambition includes relocating AI data centers to space, yet he encounters hurdles: Starlink satellite power costs are significantly higher, safeguarding chips in orbit is challenging, and distributing AI training across satellites remains untested. The filing hints at 'terawatt-scale annual AI compute growth,' implying Musk anticipates that computing needs will exceed Earth's limits. Presently, global data centers consume about 40 gigawatts. The article raises concerns about practicality, noting that transporting solar panels via flatbed truck is less energy-intensive than launching them into space, and that the potential for terrestrial solar energy is still largely untapped.