Elon Musk discusses xAI's AGI goals at all-hands meeting

Elon Musk addressed xAI employees at a companywide meeting in San Francisco last week, expressing optimism about the firm's future in the race for artificial general intelligence. He emphasized the importance of scaling data centers and securing funding to outpace competitors. Musk also speculated on innovative ideas like space-based data centers.

During the all-hands gathering at xAI's San Francisco headquarters, Elon Musk, the company's CEO, shared his vision for achieving superintelligence, which surpasses human intelligence. Several sources familiar with the meeting reported that Musk stated xAI could reach artificial general intelligence—matching or exceeding human capabilities—as soon as 2026. He previously mentioned a 10% chance of AGI with the upcoming Grok 5 model, slated for early next year.

Musk stressed that surviving the next two to three years would position xAI to triumph over rivals, thanks to its rapid expansion of data centers under the Colossus project. The company currently operates around 200,000 GPUs and plans to scale to 1 million. Access to $20 billion to $30 billion in annual funding, along with synergies from Musk's other ventures like Tesla—which integrated Grok into its vehicles this year—will provide a competitive edge.

Employees described Musk as upbeat, with one calling the atmosphere 'peppy.' He also discussed futuristic concepts, including building data centers in space to support Mars colonization efforts. Musk suggested Tesla's Optimus humanoid robot could operate these extraterrestrial facilities, potentially aiding SpaceX missions as early as next year. This idea aligns with comments from Google CEO Sundar Pichai and OpenAI CEO Sam Altman, who have explored space data centers as a 'moonshot.'

The meeting featured demonstrations of product updates, including enhancements to Grok Voice for better listening, predictive capabilities in Grok, the Tesla owners' app, and video editing features for agents. Amid the intensifying AI race, xAI remains a newer entrant challenging leaders like OpenAI and Google, which recently released advanced models amid competitive pressures.

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Elon Musk announces SpaceX-xAI merger at podium, with screen showing orbital AI data centers, Starships, and Mars visions.
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SpaceX acquires xAI to power AI with space data centers

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Elon Musk announced on February 2, 2026, that his SpaceX company has acquired his AI startup xAI, aiming to build orbital data centers to meet surging electricity demands for artificial intelligence. The merger integrates AI, rockets, and satellite technology to create a vertically integrated innovation engine. Musk envisions this enabling advancements like Moon bases and Mars colonization.

Elon Musk hat die Übernahme seines KI-Unternehmens xAI durch SpaceX, sein Raumfahrtunternehmen, angekündigt, um Rechenzentren im Orbit zu entwickeln. Die Fusion soll der wachsenden Stromnachfrage für KI durch Kombination von raumgestützter Solarenergie und orbitaler Infrastruktur gerecht werden. Das Projekt passt zu Musks umfassenderen Ambitionen für die Raumforschung.

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Elon Musk appears to be consolidating his companies, with Tesla halting production of key models to focus on AI robots and investing in xAI. Reports indicate plans to merge SpaceX with Tesla or xAI to prepare for a stock market listing. This move aims to bolster AI development amid growing resource demands.

Tesla has agreed to invest approximately $2 billion in xAI's Series E Preferred Stock, signaling deeper integration between its automotive and AI ambitions. The company is also discontinuing its Model S and Model X vehicles to shift focus toward robotics and AI infrastructure. This pivot includes operational ties, such as xAI's $430 million purchase of Tesla's Megapack systems in 2025.

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At Tesla's 2025 annual shareholder meeting, Elon Musk unveiled ambitious plans for the Optimus humanoid robot, stating it would eliminate poverty and provide superior medical care. Shareholders approved Musk's $1 trillion performance-based pay package, which includes targets for delivering one million Optimus units over the next decade. Musk highlighted the robot's potential to transform the economy through sustainable abundance.

Tesla CEO Elon Musk reportedly gave a Cybertruck to an xAI employee who met a tight deadline for a GPU training run. The promise came during a high-stakes bet to accelerate AI development. Sulaiman Ghori shared the story in a recent YouTube interview.

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Following his recent vision of an AI-driven utopia without money or mandatory work, Elon Musk posted on X that AI and robotics will create sustainable abundance for everyone. The December 18, 2025, statement reinforces his optimism amid ongoing tech debates.

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