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Musk's mega-merger of SpaceX and xAI bets on sci-fi future of data centers in space

The merger aims to build orbital AI data centers powered by near-constant solar energy, with a combined valuation of $1.25 trillion ahead of a planned 2026 IPO.

  • Elon Musk's companies SpaceX and xAI have merged, aiming to create orbital data centers powered by solar energy in space.
  • Proponents argue that space-based data centers could be cheaper than those on Earth due to constant solar power and ability to release heat into space.
  • However, experts warn of significant technical challenges including radiation, debris, heat management, latency, and high costs that make profitability uncertain in the near future.
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Japan Today broke the news in Sakado, Japan on Tuesday, February 3, 2026.
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