SpaceX, the aerospace company founded by Elon Musk, has acquired his AI startup xAI. According to NS3.AI, the acquisition is driven by terrestrial limitations on power and cooling for AI systems. Musk aims to relocate AI computing infrastructure to space, utilizing a satellite constellation and the Starship for scalable and cost-effective AI processing. However, the plan encounters challenges such as signal latency, and xAI's AI system, Grok, has faced criticism for controversial behaviors.

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