Musk Empire Makes a Move

Editor's Note

What I’m Watching

Next Level Infrastructure 🛰️ 

I need to tell you about something happening right now that most people are going to miss until it's too late.

SpaceX just acquired xAI (which owns X.com). And if you understand what this means, you'll see why Elon Musk is building something nobody else on the planet can replicate.

Let me break down what just happened—and why it matters to your financial future.

The Three Ingredients Every AI Company Needs

If you've been paying attention to the AI race between xAI, OpenAI, Google, and Meta, you know they all need three things to compete:

1. Massive amounts of electricity and cooling capacity

2. Access to GPU chips (mostly from Nvidia)

3. Vast amounts of training data

Here's the problem: all three are getting harder and more expensive to secure on Earth.

And here's what Musk just figured out: he doesn't need to compete on Earth.

Moving AI Into Orbit 🛫 

SpaceX has run the numbers, and they've discovered they can build and deploy satellite-based AI servers in space cheaper than building data centers on the ground.

Think about what this means:

• Free, unlimited solar power (no power plants to build or energy bills to pay)

• No cooling systems required (space is already cold)

• No land to buy (you're floating in orbit)

• Reusable rockets (SpaceX is the only company with this capability)

In January 2026, SpaceX applied for permits to launch up to 1 million low-Earth-orbit satellites as an "orbital data-center system."

Musk predicts that within 2-3 years (2028-2029), space will become the lowest-cost place for AI compute. Within 4 years, it'll be the fastest way to scale.

And here's the kicker: if Meta or Google want to build their own orbital data centers, they'll have to pay SpaceX a premium to launch them. They'll be funding their own competition.

Why xAI Acquiring X.com Was Brilliant

Remember when Elon bought Twitter for $44 billion in 2022, took it private, and rebranded it as X.com? Everyone thought he overpaid.

Then in 2023, he started xAI (home of Grok), and xAI acquired X.com.

Here's why that mattered:

X.com is the largest source of real-time social information in the world. Training effective AI models requires vast amounts of data, and acquiring X.com gave xAI instant access to an endless stream of real-time human conversation.

But there's a second reason this was critical:

AI is only as good as the data it's trained on. If you train AI on biased or censored content, you get biased, unreliable AI. Musk turned X.com into a free-speech platform specifically to ensure xAI has access to unbiased training data.

That's why he made the algorithm open-source. That's why he created Community Notes. That's why he's paid hundreds of millions in EU fines to resist censorship demands.

(Notice how Zuckerberg suddenly announced Meta would "open up free speech" on Facebook and Instagram after Trump won in 2024? He realized he needed unbiased data to compete.)

Now SpaceX Owns the Entire Stack

With SpaceX acquiring xAI, here's what they now control:

• X.com = endless real-time training data

• Starlink satellites = global data transmission network

• Orbital data centers = unlimited, low-cost AI compute power

• Reusable rockets = the only way to launch and maintain this system

No one else can build this. Google can't. Meta can't. OpenAI can't.

SpaceX has a monopoly on reusable rockets, which means they're the only company that can turn space into a global data center powered by the sun and cooled by the vacuum of space.

What About Tesla?

Is SpaceX going to overshadow Tesla? No. They're symbiotic.

Tesla just announced they're ending production of the Model S and Model X this year to transform that California factory into the assembly line for Optimus robots.

By 2030, Optimus should be rolling off production lines by the hundreds of thousands—then millions.

Tesla's second priority: scaling the RoboTaxi fleet and Full Self-Driving (FSD), which becomes subscription-only in April 2026. By 2030, this could generate $50+ billion in annual revenue.

And here's the part most people are missing:

Tesla is designing their own in-house AI chips (production starts 2027) to replace Nvidia chips. Musk is planning to build the world's largest "Tera-fab" manufacturing plant for these chips.

These chips will power:

• Orbital data centers

• Tesla self-driving cars

• Optimus robots

If you think Nvidia is valuable today, imagine what this means for Tesla.

Finally, Tesla is expanding terrestrial energy production: solar panels, Megapacks, and grid-scale battery farms to transition the world from oil to electricity.

This isn't just about cars anymore. It's about powering an AI-driven future.

The SpaceX IPO Is Coming 💶 

SpaceX is planning to go public in June 2026 in what will be one of the most anticipated IPOs in history.

Now that SpaceX owns xAI (and X.com), here's what you're actually buying:

• A monopoly on reusable rocket technology

• The only company capable of building orbital AI infrastructure

• A global satellite network (Starlink) generating billions in revenue

• Access to the most advanced AI training data on the planet

What This Means For You

If I could only invest in two companies for the next 20 years, it would be Tesla and SpaceX.

Nobody else is operating on this level. They're not just ahead—they're building infrastructure that competitors literally cannot replicate without paying SpaceX to do it for them.

Markets are volatile right now, and we're likely due for a correction this year. That will give us the opportunity to buy shares in both companies at bargain prices.

Short-term volatility will be high. But I believe owning these two stocks over the next 20 years will be one of the most important financial moves you can make.

Not financial advice. Just what I'm watching—and what I think you should be watching too.