Elon Musk Reveals xAI Plans for AI Satellite Factory on Moon

TLDR

Table of Contents

Elon Musk revealed plans during a Tuesday xAI meeting to potentially build a lunar factory for manufacturing AI satellites
The proposed facility would feature a “mass driver” catapult to launch satellites from the moon’s surface into orbit
SpaceX acquired xAI this month and now prioritizes a moon city over Mars due to shorter travel times and launch windows
A lunar base could be completed in less than 10 years compared to over 20 years for Mars colonization
Musk stated X platform has reached 600 million monthly active users with plans to exceed one billion daily users

Elon Musk shared ambitious plans for a lunar manufacturing facility during a company-wide xAI meeting on Tuesday. The billionaire entrepreneur told employees the startup may eventually construct a factory on the moon to produce AI satellites.

For those unaware, SpaceX has already shifted focus to building a self-growing city on the Moon, as we can potentially achieve that in less than 10 years, whereas Mars would take 20+ years.

The mission of SpaceX remains the same: extend consciousness and life as we know it to…

— Elon Musk (@elonmusk) February 8, 2026

According to The New York Times, Musk outlined plans for a massive “mass driver” system. This giant catapult mechanism would launch manufactured satellites from the lunar surface directly into space. The setup would give xAI access to computing power that Earth-based competitors couldn’t match.

SpaceX Acquires xAI and Shifts Space Priorities

SpaceX announced its acquisition of xAI earlier in February. Musk described the merger as opening a new chapter for both organizations during the employee meeting.

The acquisition comes with a strategic shift in SpaceX’s space exploration timeline. The company now focuses on establishing a moon base before pursuing Mars colonization. Musk explained the decision comes down to basic logistics and travel frequency.

Spacecraft can launch to the moon every 10 days with a two-day travel time. Mars missions only become possible every 26 months due to planetary alignment. The journey takes six months each way. This difference allows much faster development cycles for lunar projects.

Musk posted on X that SpaceX aims to build a self-sustaining lunar city in under 10 years. He emphasized that faster iteration speeds make moon colonization more practical as an initial target. The moon serves as a proving ground before attempting Mars settlements.

Mars Colonization Timeline Pushed Back

Mars remains part of SpaceX’s long-term vision despite the priority shift. Musk told employees the company plans to begin Mars city construction in five to seven years. He stressed that securing civilization’s future takes precedence, making the moon the faster path forward.

The timeline represents a change from Musk’s 2020 predictions. He previously expressed high confidence that SpaceX would land humans on Mars by 2026. At that time, he suggested sending an uncrewed vehicle to Mars within two years.

President Donald Trump voiced support for Mars exploration last year. Speaking to Congress, he expressed interest in planting an American flag on the Red Planet.

X Platform User Growth and New Features

Musk used the meeting to discuss X, formerly known as Twitter. He claimed the social media platform now has approximately 600 million monthly active users. Current users mainly access X during major global events.

Musk expects engagement to increase as new features launch. The platform plans to introduce X Money, a banking service for users. A standalone chat application is also under development. Musk projected X could eventually surpass one billion daily active users with these additions.

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