Elon Musk has outlined an ambitious plan to build a factory on the moon to manufacture AI-powered satellites, expanding his vision for taking artificial intelligence infrastructure into space.
Speaking during an all-hands meeting at xAI on Tuesday evening, Musk told employees that the company would eventually need a lunar facility to produce satellites capable of delivering vast computing power for its artificial intelligence systems. The proposal includes the use of a “mass driver,” a type of electromagnetic catapult, to launch satellites from the moon into orbit.
“You have to go to the moon,” Musk said during the meeting, which was heard by The New York Times. He argued that building AI infrastructure beyond Earth would allow xAI to access more power than its competitors.
The remarks come just days after Musk announced plans to merge xAI with SpaceX, his rocket company, in a move aimed at accelerating the development of space-based data centers. SpaceX is reportedly preparing for an initial public offering that could take place as early as June. A representative for xAI did not respond to a request for comment.
While Musk has long framed Mars as SpaceX’s ultimate destination, his recent public statements suggest a growing emphasis on the moon. Since founding SpaceX in 2002, he has repeatedly said the company’s mission is to make humanity multiplanetary, beginning with a settlement on Mars. However, in recent months he has increasingly described the moon as a strategic steppingstone.
During Tuesday’s meeting, Musk outlined a phased plan: first, building a “self-sustaining city on the moon,” then advancing to Mars, and eventually exploring distant star systems. Two former SpaceX executives told the Times that the moon had historically not been a central focus of the company’s long-term strategy.
Beyond space ambitions, Musk also addressed developments at X, the social media platform formerly known as Twitter, which he merged with xAI last year. He said X currently has about 600 million monthly active users, a figure that could not be independently verified.
Musk said upcoming features, including a digital payments service called X Money and a standalone messaging app, are intended to increase daily engagement. He expressed confidence that the platform could surpass one billion daily active users.
Despite his sweeping projections, Musk has previously made timelines that did not materialize. In 2016, for example, he said SpaceX would send its first cargo mission to Mars by 2018, a goal that remains unmet.
At xAI, Musk signaled that rapid expansion may lead to internal restructuring. He suggested that some early-stage employees may not be suited to the company’s next phase of growth.
“If you’re moving faster than anyone else in any given technology arena, you will be the leader,” Musk said, adding that organizational changes are underway to improve effectiveness at scale.
