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In an effort to save tech bloggers from a lot of annoying typing, xAI has finally been rebranded: We are now @SpaceXAI. pic.twitter.com\/ema66xDWC9 \u2014 SpaceXAI (@SpaceXAI) July 6, 2026 \u00a0 I\u2019m elated. Do you have any idea how much I\u2019ve dreaded writing about \u201cxAI,\u201d with its leading lowercase letter? How much I loathed explaining that the Elon Musk-owned operator of the Grok chatbot was acquired by Elon Musk-owned SpaceX back in February, before SpaceX became publicly-traded last month? The animation in SpaceXAI\u2019s X post (did I forget to mention that SpaceXAI owns X?) is, sure, embarrassing, aesthetically speaking. Watch in awe as the xAI logo, which looked like it was made ten minutes before it was due in graphic design class, contorts into the famously gorgeous and beloved styling of the SpaceX logo\u2014a breathtaking metamorphosis. Now you have to squint to even see the AI part. But, logo aside, it\u2019s a massive win for clarity. It\u2019s SpaceX\u2026 AI. SpaceXAI. I no longer have to explain anything.\u00a0<\/p>\n
In March, Elon Musk said SpaceXAI\u2019s signature product, Grok, was so flawed that it needed to be \u201crebuilt from the foundations up.\u201d SpaceX then began the process of buying Cursor, an AI coding tool. Since then, Musk has claimed that Grok is progressing toward a \u201cmajor improvement.\u201d<\/p>\n
Grok foundation model V9-Medium (1.5T) has finished training. Evals look good. A lot of Cursor data was added in supplementary training and there is more to come. Fine-tuning is underway and reinforcement learning begins in a few days. 2 to 3 weeks to public release. This will\u2026 \u2014 Elon Musk (@elonmusk) May 25, 2026 \u00a0 Last year, the company then called xAI reportedly spent $6.4 billion\u2014twice its revenue. However, the AI division of SpaceX is absolutely critical to Elon Musk\u2019s narrative about SpaceX\u2019s future as a world-historically massive company with a \u201ctotal addressable market\u201d of $28.5 trillion. In this story, space infrastructure and space exploration are meant to be inextricably linked to AI. The SpaceX prospectus puts it in these terms: We believe AI infrastructure in space can utilize the virtually limitless power of the Sun and thereby enable the use of AI as a transformative force for understanding the universe and improving the daily lives of all humans. Elon Musk has also rattled off a version of this concept in oratory form, as he did during an all-hands meeting of xAI workers in February. That version contained, um, fanciful embellishments like this:<\/p>\n
So the\u2014the next step beyond Earth data centers are Earth orbital data centers, and we\u2019ll be launching, with SpaceX, orbital data centers at the 100 to 200 gigawatt per year level. Not cumulative. I mean per year. And ultimately, we see a path to maybe launching as much as a terawatt per year of compute from Earth. But what if you want to go beyond a mere terawatt per year? In order to do that you have to go to the moon. Anyway, good luck to the folks at SpaceXAI who theoretically have to accomplish all of this while their parent company continues to seep into our equity markets despite the company\u2019s governance structure making it impossible to fire Musk, no matter what happens. Goofy or not, this man\u2019s harebrained ideas now have so much buy-in from our wealth-holding class, they sort of have to be true now, or we might all be screwed.