The Journal. Elon Musk’s $1.25 Trillion Megamerger
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Feb 6, 2026 A mega-merger joining a rocket and satellite business with an AI startup and its $1.25 trillion valuation. A plan to build AI data centers in orbit powered by solar energy. Deep dives into engineering hurdles and skeptical timelines for space-based cloud computing. Strategic reasons behind the combination and how it reshapes IPO plans and investor reactions.
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Unprecedented AI-Plus-Space Company
- Elon Musk merged an AI research company with a rocket-and-satellite company creating an unprecedented business model.
- The combination pairs advanced launch capability with AI ambitions centered on orbital data centers.
Orbit As The Solution For AI Power Needs
- Musk's stated rationale is to move resource-intensive AI data centers off Earth and into orbit where power and space are abundant.
- He frames solar power and SpaceX's launch capacity as the technical pillars for orbital AI infrastructure.
Big Promise, Big Engineering Hurdles
- The orbital data-center idea leverages limitless solar energy but faces serious engineering hurdles.
- Even optimists in Silicon Valley expect it will take years to solve the operational challenges.