Elon Musk

Musk says solar powered and space-based data centres are the only way to meet AI’s burgeoning energy demands.

Elon Musk’s SpaceX has acquired his AI company xAI as part of an ambitious scheme to build space-based data centres to power the future of artificial intelligence.

The billionaire, who is also the CEO of Tesla, announced the merger in a statement on Tuesday on the SpaceX website.

Musk said the merger will help to address the emerging question of how to meet the power-hungry demands of artificial intelligence.

AI demand will require “immense amounts of power and cooling” that are not sustainable on Earth without “imposing hardship on communities and the environment,” he said.

Space-based data centres that harness the power of the Sun are the only long-term solution, according to Musk.

“In the long term, space-based AI is obviously the only way to scale. To harness even a millionth of our Sun’s energy would require over a million times more energy than our civilisation currently uses!” he wrote.

“The only logical solution therefore is to transport these resource-intensive efforts to a location with vast power and space,” he continued, predicting that within the next “2 to 3 years, the lowest cost way to generate AI compute will be in space”.

The merger of SpaceX and xAI will bring several of Musk’s space, artificial intelligence, internet, and social media projects under one roof.

SpaceX operates the Falcon and Starship rocket programmes, while xAI is best known for developing the AI-powered Grok chatbot. Last year, xAI also acquired X, the social media platform known as Twitter, until it was bought by Musk in late 2022.

Both companies have major contracts with US government agencies such as NASA and the Department of Defense .

SpaceX’s Starshield unit specifically collaborates with government entities, including military and intelligence agencies.

Musk is not the only tech CEO looking to space as a solution to AI’s energy quandary.

Jeff Bezos’s Blue Origin and Google’s Project Suncatcher are both working on solar-powered space-based data centres.

“In the history of spaceflight, there has never been a vehicle capable of launching the megatons of mass that space-based data centres or permanent bases on the Moon and cities on Mars require,” Musk wrote.

Musk also said his long-term plan for SpaceX is to launch a million satellites.

To achieve this aim, SpaceX’s Starship rocket programme aims to one day launch one flight per hour with a 200-tonne payload, he said.

Musk said Starlink, a subsidiary of SpaceX that offers satellite-based internet service, will soon get a major boost with the launch of SpaceX’s next generation of V3 satellites.

They will each add “more than 20 times the capacity to the constellation as the current Falcon launches of the V2 Starlink satellites”, he wrote.

An ambitious transatlantic tunnel connecting London and New York could see travellers make the journey in just 54 minutes, though the project carries an estimated £15.6 trillion price tag.

Travelling from London to New York in less than an hour might one day become reality. Bold proposals could materialise following suggestions for a tunnel linking the two cities across the Atlantic.

The concept isn’t fresh, as countless visionaries have imagined such an achievement, though it’s long been deemed unfeasible. Nevertheless, Elon Musk weighed in on the notion, claiming his firm, The Boring Company, could turn it into reality.

Technological advances have progressed significantly, thanks to vacuum tubes and pressurised vehicles.

Despite carrying an eye-watering price tag, the journey could potentially come to fruition. Estimates for excavating beneath the Atlantic Ocean have exceeded £15trillion.

However, Musk insisted he could deliver it for considerably less. In 2024, he posted on X: “The @boringcompany could do it for 1000X less money,” responding to the cost projections, reports the Express.

The proposals might appear outlandish, but vacuum technology could be edging it towards reality. Newsweek reported that a vacuum within the tunnel could enable trains to achieve speeds exceeding 3,000 mph.

This would slash the London to New York journey time to just under an hour. The train could prove more environmentally sound as it may reduce air pollution from aviation.

The technology behind a vacuum tunnel resembles superloop trains, which Swiss engineers believe will “change the future of travel”. Yet, numerous companies have attempted and struggled to perfect the hyperloop technology.

Plans for the tunnel have prompted some engineers to suggest it should be constructed below the seabed, whilst others argue that suspending it using cables or supports would prove superior.

The Channel Tunnel serves as the closest comparison to the Transatlantic proposals, linking Britain to France.

It spans merely 40 miles in contrast to the 3,000 miles separating Britain from New York.

Moreover, it required six years to build. Should the proposed tunnel connecting Britain and America proceed at an identical pace, it would demand an extraordinary 782 years to finish.

Musk’s electric car company says it will invest $2bn in artificial intelligence start-up as part of pivot away from auto market.

Tesla has reported its first-ever decline in annual revenue on a busy day for corporate earnings that also saw the release of results from Microsoft, Meta and Samsung Electronics.

Elon Musk’s electric car company said on Wednesday that revenue fell 3 percent year-on-year to $24.9bn in the final quarter of 2025. Revenue for all of 2025 was $94.8bn, down from $97.7bn the previous year.

Net profit fell 61 percent to $840m in the quarter, taking profit for the year to $3.8bn, down sharply from $7.1bn in 2024.

The Austin, Texas-based company also revealed that it had agreed to invest $2bn in Musk’s artificial intelligence start-up xAI – the developer of Musk’s controversial Grok chatbot – as part of a push to lessen its reliance on the auto market.

“Together, the investment and the related framework agreement are intended to enhance Tesla’s ability to develop and deploy AI products and services into the physical world at scale,” the company said in its earnings report.

Tesla shares rose about 2.2 percent in after-hours trading.

Also on Wednesday, tech giants Microsoft, Meta and Samsung reported strong earnings in their latest reports to shareholders.

Meta, the parent company of Facebook and Instagram, reported a profit of $22.8bn on revenue of $59.9bn in the October-December period, a 6 percent rise year-on-year.

Meta shares surged nearly 7 percent in extended-hours trading.

Microsoft said profit rose 60 percent to $38.5bn in the final quarter, based on revenue of $81.3bn.

“We are only at the beginning phases of AI diffusion and already Microsoft has built an AI business that is larger than some of our biggest franchises,” Microsoft CEO Satya Nadella said in a statement.

“We are pushing the frontier across our entire AI stack to drive new value for our customers and partners.”

Despite its strong earnings, Microsoft’s announcement that capital spending hit a record $37.5bn in the second quarter stoked fears of an AI investment bubble, sending stock prices sharply lower.

Microsoft’s shares fell more than 6 percent in after-hours trading on Wednesday.

Samsung Electronics, the biggest producer of memory chips globally, reported a profit of 20.1 trillion won ($13.98bn) on revenue of 93.8 trillion won ($65.6bn), a more than three-fold rise from the previous year.

Jan. 28 (UPI) — Electric vehicle maker Tesla’s revenue and profits fell during the fourth quarter of 2025 despite record levels of production.

Tesla officials on Wednesday reported the Elon Musk-owned company’s adjusted income dropped by 16% during the final quarter of 2025, while net income fell 61% for the quarter and 46% for the entire year.

The quarterly and final revenue report for 2025 reflects Tesla’s largest year-to-year revenue drop as its quarterly global sales of electric vehicles declined despite an increased global demand for EVs.

Partly to blame is the end of a $7,500 federal tax credit for those who bought qualifying EVs, combined with opposition by those who opposed Musk leading the Department of Government Efficiency and his general support of the Trump administration earlier in 2025.

Tesla also is facing increased competition from other EV makers, including Chinese EV firm BYD.

Despite the decline in revenues, Tesla shares rose in value by about 3% during after-hours trading on Wednesday and peaked at $449.76 per share before declining to $437.02.

Tesla officials reported that it produced a quarterly record 434,358 EVs during the final three months of 2025 and delivered 418,227. It also produced a record 14.2 GWh of energy-storage products.

For the year, Tesla produced 1.66 million EVs, delivered 1.64 million and produced 46.7 GWh of energy-storage products.

Jan. 26 (UPI) — Treasury Secretary Scott Bessent announced Monday that the department canceled all contracts with consulting firm Booz Allen Hamilton because of a data leak that included President Donald Trump‘s tax returns.

The department has 31 contracts with Booz Allen for a total of $4.8 million in annual spending and $21 million in total obligations, a press release said.

“President Trump has entrusted his cabinet to root out waste, fraud, and abuse, and canceling these contracts is an essential step to increasing Americans’ trust in government,” Bessent said in a statement.

Between 2018 and 2020, a Booz Allen employee, Charles Edward Littlejohn, “stole and leaked the confidential tax returns and return information of hundreds of thousands of taxpayers.”

The breach affected about 406,000 taxpayers, including Trump, Amazon founder Jeff Bezos and Tesla CEO Elon Musk.

“Booz Allen failed to implement adequate safeguards to protect sensitive data, including the confidential taxpayer information it had access to through its contracts with the Internal Revenue Service,” Bessent said.

Littlejohn pleaded guilty in October 2023 to one charge of disclosure of tax return information and was sentenced to five years in prison. He admitted to leaking Trump’s tax information to The New York Times and leaking other tax information to ProPublica.

Booz Allen’s stock price dipped by 8% on the news, CNBC reported.

Commission President Ursula von der Leyen says Europe will not ‘tolerate unthinkable behaviour, such as digital undressing of women and children’.

The European Commission has launched an investigation into Elon Musk’s AI chatbot, Grok, regarding the creation of sexually explicit fake images of women and minors.

The commission announced on Monday that its investigation would examine whether the AI tool used on X has met its legal obligations under the European Union’s Digital Services Act (DSA), which requires social media companies to address illegal and harmful online content.

Brussels said the investigation would examine whether X had properly mitigated “risks related to the dissemination of illegal content in the EU, such as manipulated sexually explicit images, including content that may amount to child sexual abuse material”.

In a statement to the AFP news agency, European Commission President Ursula von der Leyen said Europe will not “tolerate unthinkable behaviour, such as digital undressing of women and children”.

“It is simple – we will not hand over consent and child protection to tech companies to violate and monetise. The harm caused by illegal images is very real,” she added.

Grok has faced a recent outcry after it was uncovered that users could ask the chatbot to create deepfakes of women and children by simply using prompts such as “put her in a bikini” or “remove her clothes”.

EU tech commissioner Henna Virkkunen said the rights of women and children in the EU should not be “collateral damage” of X’s services.

“Non-consensual sexual deepfakes of women and children are a violent, unacceptable form of degradation,” Virkkunen said in a statement.

X has been under investigation by the EU over its digital content rules since December 2023.

This month, Grok said it would restrict image generation and editing to paying customers after criticism of the tool’s capabilities.

A nonprofit organisation, the Centre for Countering Digital Hate, published a report last week that found Grok had generated an estimated 3 million sexualised images of women and children in a matter of days.

In December, the EU ordered X to pay a 120-million-euro ($140m) fine for violating the DSA’s transparency obligations.

The EU is not the only body investigating Grok’s tool; the United Kingdom’s media regulator, Ofcom, announced it had launched an investigation into X to determine whether it had complied with requirements under the UK’s Online Safety Act.