Starship, the world's largest rocket that launches in Texas, could play a vital role in SpaceX founder Elon Musk's vision of orbital data centers.

Elon Musk's mega-deal combining SpaceX and xAI is the latest sign that the billionaire is consolidating his business empire as he goes all in on AI.

Elon Musk’s rocket company SpaceX acquired his artificial intelligence firm xAI on Monday, according to reports. The deal gave the companies a whopping combined valuation of $1.25 trillion, according to Bloomberg.

Elon Musk believes the best way to solve the difficulties of building AI data centers on earth is to move them into outer space. His merger this week of his rocket company SpaceX with his artificial intelligence company xAI could help get them there.

SpaceX, a leader in rocket launches and satellite internet, will now also house Musk’s ventures in artificial intelligence and social media.

In its earnings report on Wednesday, Tesla said it invested $2 billion in xAI, Elon Musk's artificial intelligence startup.

Elon Musk's mega-merger of his companies xAI and SpaceX this week brings this sci-fi dream a step closer. NASA engineers and technologists have speculated for ​nearly two decades about moving energy‑hungry computing off the planet.