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A proposed merger between SpaceX and xAI could accelerate plans to develop space-based data centers, which are intended to leverage solar-powered satellites for AI computing. These centers aim to address the growing energy costs of Earth-based facilities.

Deutsche Bank projects initial small-scale deployments by 2027-28, with larger systems emerging in the 2030s. SpaceX, led by Elon Musk, is well-positioned for this venture, supported by its successful satellite launches.

Concurrently, China plans to build artificial intelligence data centers in space over five years, as reported by state media, to enhance its technological capabilities and reduce dependence on Earth. This initiative includes the development of a space-based cloud computing network by 2030. The competition between the U.S. and China in space technology is intensifying, with both nations pursuing advancements in AI and satellite infrastructure.