Elon Musk reveals xAI plans for moon factory with giant satellite catapult amid co-founder exits

10 Sources

Share

At an xAI all-hands meeting, Elon Musk unveiled plans to build an AI satellite factory on the moon, complete with a giant electromagnetic catapult to launch satellites into space. The announcement comes as six of xAI's 12 co-founders have departed and the newly merged SpaceX-xAI entity targets a $1.5 trillion IPO this summer, marking a dramatic shift from Mars to lunar ambitions.

Elon Musk Pitches Lunar Manufacturing Facility for AI Satellites

During a Tuesday night xAI all-hands meeting, Elon Musk outlined an ambitious vision that would fundamentally reshape how his company approaches scaling AI. According to audio heard by The New York Times, Musk told employees that xAI needs an AI satellite factory on the moon, equipped with a giant catapult—technically an electromagnetic mass driver—to launch satellites into space

1

.

Source: Mashable

Source: Mashable

"You have to go to the moon," Musk said, explaining the move would help xAI harness more computing power than any rival

2

. The plan centers on creating orbital data centers powered by solar power and cooled by the vacuum of space, addressing what Musk describes as insurmountable terrestrial energy constraints

2

.

Satellite Catapult on the Moon Faces Technical Hurdles

The proposed satellite catapult represents a significant engineering challenge. While the moon's gravity is one-sixth that of Earth, achieving escape velocity still requires speeds around 3,800 MPH—five times the speed of sound

3

.

Source: Futurism

Source: Futurism

Electromagnetic railguns can currently launch projectiles at speeds up to Mach 8.8, but any satellite launched by such a mass driver would need to withstand acceleration forces around 10,000 g or more

3

. The concept isn't entirely science fiction—mass drivers have existed in serious space engineering discussions for decades, with the moon's lack of atmosphere making the idea more plausible than Earth-based alternatives

5

.

Shift From Mars to the Moon Marks Strategic Pivot

This lunar focus represents a dramatic departure for SpaceX, which spent 24 years prioritizing Mars colonization. Just before the Super Bowl, Musk announced that SpaceX had "shifted focus to building a self-growing city on the Moon," arguing it could be achieved in less than 10 years while Mars would take "20+ years"

1

4

. This marks a significant walk-back from earlier claims about reaching Mars by 2026

3

. Musk told employees that "by far the cheapest place to put AI will be space in 36 months or less," framing space-based AI as the only viable path for scaling AI without imposing hardship on communities and the environment

2

.

Co-Founders Leaving as xAI Reorganizes

The xAI all-hands meeting came at a turbulent moment for the company. On Monday night, co-founder Tony Wu announced his departure, followed less than 24 hours later by Jimmy Ba, who reported directly to Musk

1

. This brings the total to six of xAI's 12 founding members who have now left the young company. Musk acknowledged the flux, telling employees that "when this happens, there's some people who are better suited for the early stages of a company and less suited for the later stages"

1

. With a SpaceX IPO reportedly targeting a $1.5 trillion valuation coming as soon as this summer, all departing founders stand to benefit financially

1

.

Building the World's Most Powerful World Model

According to one venture backer in xAI, the lunar ambitions aren't a distraction but integral to Musk's ultimate goal: creating the world's most powerful world model, an AI trained on proprietary real-world data that no competitor can replicate

1

.

Source: Quartz

Source: Quartz

Tesla contributes energy systems and road topology, Neuralink offers insights into the brain, SpaceX provides physics and orbital mechanics, and The Boring Company adds subsurface data. A lunar manufacturing facility would add another dimension to this data ecosystem. During the meeting, xAI also announced it's splitting into four teams: "Grok Main & Voice" for the chatbot, "Coding" for backend systems, "Imagine" for AI-generated video, and "Macrohard," a new project seeking to simulate software companies with AI

4

.

Legal and Practical Challenges Loom Large

Under the 1967 Outer Space Treaty, no nation or company can claim sovereignty over the moon. However, a 2015 U.S. law created a loophole: while you can't own the moon, you can own whatever you extract from it

1

. As Mary-Jane Rubenstein, a professor of science and technology studies at Wesleyan University, explained, "It's more like saying you can't own the house, but you can have the floorboards and the beams"

1

. China and Russia have not agreed to these rules, creating potential geopolitical complications. Beyond legal questions, the practical challenges are immense—SpaceX has never sent a mission to the moon, and building a self-growing city would require establishing power systems, life support, redundancy, and manufacturing capabilities 238,000 miles from Earth

5

. Musk concluded the meeting by suggesting this could lead to discovering ancient alien civilizations, stating, "the only way we're gonna do that is if we go out there and we explore"

4

.

Today's Top Stories

TheOutpost.ai

Your Daily Dose of Curated AI News

Don’t drown in AI news. We cut through the noise - filtering, ranking and summarizing the most important AI news, breakthroughs and research daily. Spend less time searching for the latest in AI and get straight to action.

© 2026 Triveous Technologies Private Limited
Instagram logo
LinkedIn logo