Elon Musk appears to be shelving his ambitions to spearhead a sweeping electrification of the economy and foster growth in the terrestrial solar energy sector. The data center operated under his xAI venture currently draws power from fossil fuels and has not engaged in significant procurement of Tesla's solar panels. According to SpaceX's prospectus, the emphasis in solar energy development has now shifted to outer space, with intentions to energize future data centers via space-borne solar power. This strategy is believed to be capable of generating substantially more energy than terrestrial systems, while also sidestepping public opposition.

However, the economic feasibility of this model remains uncertain, as it grapples with a multitude of hurdles, including exorbitant costs and technological barriers. Musk harbors concerns that the escalating demand for artificial intelligence computing power may surpass the maximum energy supply available on Earth. Employing first-principles thinking, he projects the anticipated surge in demand for computing capabilities, reverse-engineers the necessary industrial configurations, and envisions the deployment of gigawatt-scale computing servers into space within the next few years, while simultaneously phasing out terrestrial installations. Nevertheless, the development of space-based solar energy is both energy-intensive and challenging to scale up for mass production. Moreover, the full potential of Earth-based solar energy remains underexploited.