Elon Musk has given up on solar power (on Earth)
TechCrunch says Musk’s companies are leaning on gas and orbital data centers, not Earthbound solar, for the AI buildout he once framed as solar-powered.
The article argues Musk has shifted away from the solar-electric economy he used to promise, at least for his AI businesses. Instead, xAI is buying gas turbines and SpaceX is pitching space-based solar as the answer to soaring compute demand.
Elon Musk used to talk about a future powered by sun energy on Earth.
Now his companies are using gas for AI data centers, and SpaceX is talking about putting computers in space where sunlight never stops. It is like saying a house needs so much electricity that the answer might be to build the power plant on a rocket.
The article says that idea is very expensive and full of problems. It also says Earth still has plenty of room to use cleaner power before moving everything into space.
Analysis
From solar promise to fossil-fuel reality
TechCrunch says Musk’s companies no longer look committed to the “solar electric economy” he once described as Tesla’s mission. The article points out that xAI has embraced dozens of natural-gas turbines to power data centers and plans to buy more, while SpaceX’s IPO filing shifts the focus to orbital data centers and space-based solar.
Space-based solar as the new pitch
The filing argues that space-based solar arrays can generate “more than five-times the energy” of terrestrial ones because they can stay lit around the clock. Musk’s pitch is that AI compute demand will become so large that Earth’s power and permitting limits will not keep up. The article says that view is reflected in repeated references to “terawatt-scale annual AI compute growth.”
Why the economics are still messy
TechCrunch argues that the orbital plan is not a simple fix. It notes that launching and protecting data-center hardware in space would be expensive, and it is unclear whether AI training can be distributed across satellites. The piece also says xAI has spent heavily on Tesla products like Megapacks but has not made a meaningful solar purchase from Tesla.
The broader message is that Musk seems to be treating Earthbound solar as a stopgap rather than a long-term strategy. The article frames that as a sharp turn from the clean-energy future Musk once sold, with major implications for how AI infrastructure is powered.
Key points
- TechCrunch says Musk’s companies are moving away from Earth-based solar power.
- xAI is using natural-gas turbines to power data centers and plans to buy more.
- SpaceX’s IPO filing pushes orbital data centers and space-based solar as the future.
- The filing repeatedly cites huge AI compute growth and power demand.
- The article questions whether the space plan is practical or just a distraction.
