Elon Musk just floated his most audacious distraction yet. As co-founders bolt from xAI and investors circle for an IPO, the serial entrepreneur told employees the AI startup needs a lunar manufacturing facility to build satellites and launch them via giant catapult, according to The New York Times, which obtained audio of the all-hands meeting. The timing couldn't be more revealing - instead of addressing the leadership crisis, Musk's doubling down on sci-fi moonshots that blend his SpaceX obsession with xAI's shaky foundation.
Elon Musk's latest vision for xAI involves something straight out of a science fiction novel - and it's landing at the worst possible time for the embattled AI startup. During an internal meeting, Musk told employees that xAI needs to establish a manufacturing facility on the moon that would produce AI satellites and deploy them into space using a massive catapult system, according to audio obtained by The New York Times.
The lunar factory pitch comes as xAI faces a growing exodus of co-founders and mounting pressure from investors to move forward with an initial public offering. Multiple sources close to the company say the timing of Musk's space ambitions isn't coincidental - it's classic Musk playbook, pivoting to grand visions when operational realities get messy.
xAI launched in 2023 with the explicit goal of building AI systems that could "understand the universe." The company quickly assembled a team of former OpenAI, Google DeepMind, and Microsoft Research veterans. But that star-studded founding team is now fracturing. While xAI hasn't publicly confirmed specific departures, people familiar with the matter say co-founder departures have accelerated in recent months as the company struggles to define its identity separate from Musk's other ventures.
The moon factory concept isn't entirely without precedent in Musk's empire. SpaceX has long discussed manufacturing capabilities in space, and the company's Starship vehicle is designed to eventually support lunar operations. But extending that vision to xAI's satellite constellation - which hasn't even been formally announced - represents a significant leap that critics say reveals confused priorities.
