Elon Musk has revealed an ambitious new plan to build a factory on the moon to manufacture AI-powered satellites, expanding his vision of taking artificial intelligence infrastructure beyond Earth.
Speaking during an all-hands meeting at xAI on Tuesday evening, Musk told employees that the company would eventually require a lunar facility capable of producing satellites designed to deliver massive computing power for artificial intelligence systems. The proposal includes the use of a “mass driver,” an electromagnetic catapult system that could launch satellites directly from the moon into orbit.
“You have to go to the moon,” Musk said during the meeting, which was heard by The New York Times. He argued that placing AI infrastructure in space would allow xAI to access more power resources than its competitors on Earth.
SpaceX IPO Plans and xAI Merger
Musk’s remarks come just days after announcing plans to merge xAI with SpaceX, a move aimed at accelerating the development of space-based data centers. SpaceX is reportedly preparing for an initial public offering (IPO) that could happen as early as June, a development that could significantly reshape the commercial space industry. A representative for xAI did not respond to a request for comment.
Moon Before Mars?
Although Musk has long positioned Mars colonization as SpaceX’s ultimate goal, his recent statements suggest a renewed focus on the moon as a strategic stepping stone. Since founding SpaceX in 2002, Musk has repeatedly said the company’s mission is to make humanity multiplanetary, beginning with a settlement on Mars. However, he now appears to see the moon as a more immediate platform for building advanced infrastructure.
During Tuesday’s meeting, Musk described a phased plan that would start with building a “self-sustaining city on the moon,” before expanding to Mars and eventually exploring distant star systems. Two former SpaceX executives told The New York Times that historically, the moon had not been central to the company’s long-term roadmap.
X Platform Expansion and AI Integration
Beyond space exploration, Musk also discussed developments at X, the social media platform formerly known as Twitter, which he merged with xAI last year. He claimed that X currently has around 600 million monthly active users, although that figure could not be independently verified.
Musk said new features such as a digital payments system called X Money and a standalone messaging app are designed to increase engagement. He expressed confidence that the platform could surpass one billion daily active users.
Despite these bold projections, Musk has previously announced ambitious timelines that did not materialize. In 2016, he said SpaceX would send its first cargo mission to Mars by 2018, a milestone that has yet to be achieved.
At xAI, Musk hinted at organizational changes to support rapid expansion. “If you’re moving faster than anyone else in any given technology arena, you will be the leader,” Musk said, noting that restructuring efforts are underway to improve efficiency as the company scales.
With SpaceX potentially heading toward an IPO and plans for AI infrastructure on the moon taking shape, Musk’s latest vision signals a dramatic expansion of the race to dominate both artificial intelligence and space technology.
