Musk Unveils Space Solar AI Data Centers; Plans SPAC for SpaceX-AI Merger (SPACE/SPAC)

Elon Musk announced plans to launch up to a million satellites to house solar-powered data centers in space, aiming to expand AI and chatbots without straining Earth grids. The initiative is set to be financed by an initial public offering of the combined SpaceX and Tesla AI venture. Space experts warn significant hurdles remain, including radiative cooling for heat dissipation, potential debris collisions, and the absence of in-orbit repair capabilities. Professor Josep Jornet notes infrared radiators may be needed, while John Crassidis highlights orbital debris and high-relative velocities pose collision risks. Musk leverages SpaceX’s low-cost launch access and internal payload pricing to drive the project, with Aetherflux and Google also exploring orbital computing. The SPAC is scheduled to debut in early 2026, pending regulatory and technical approvals.