Elon Musk Eyes Moon Factory for AI Ambitions as xAI Faces Co-Founder Departures

Elon Musk is turning his attention skyward—literally. At a recent all-hands meeting with xAI employees, Musk outlined a bold vision: building a manufacturing facility on the moon that produces AI satellites and launches them into orbit via a massive catapult. “You have to go to the moon,” he reportedly told staff, arguing that such a move would give xAI computing power far beyond any competitor. Musk added that the intelligence created could be unprecedented and thrilling to witness.

While the idea of a lunar factory captures the imagination, details on execution remain vague. Musk acknowledged that xAI, now merging with SpaceX, is in a state of flux as it nears a potential record-breaking IPO. “If you’re moving faster than anyone else in any given technology arena, you will be the leader,” he said. He also hinted that some employees are better suited for early-stage growth than the company’s next phase—a pointed comment amid recent leadership departures.

The timing of the moon-focused meeting comes amid significant co-founder exits. Tony Wu announced his departure on Monday, followed by Jimmy Ba the next day, bringing the total to six of xAI’s twelve founding members leaving the company. While these departures have reportedly been amicable, they underscore the growing pains of a company racing toward what could be a $1.5 trillion IPO this summer.

Musk’s lunar ambitions mark a shift from SpaceX’s traditional Martian focus. Just days before the Super Bowl, he tweeted that a moon-based self-growing city could be built in half the time of a Mars colony, which could take decades. Investors appear intrigued by the prospect of orbital data centers, but for Musk, the moon project is part of a larger vision: creating the world’s most powerful AI model, powered by real-world data from Tesla, Neuralink, SpaceX, and other ventures.

Legal and logistical challenges remain significant. The 1967 Outer Space Treaty prevents nations from claiming the moon, though U.S. law allows companies to own extracted resources. Experts warn this framework is complex and partially untested internationally. Meanwhile, as xAI navigates these ambitions, the team is shrinking even as Musk pushes toward a vision that could transform both AI and space exploration.

source: techcrunch