In a recent interview, Musk fully explained his overall strategy for the long-term development of the AI industry. He emphasized that the key to future AI competition lies not only in the models themselves and who buys the most chips, but also in who can convert nominal computing power into usable computing power more quickly. Facing the three major bottlenecks of electricity, chips, and computing space, he is simultaneously positioning himself in computing power, energy, and space platforms through xAI, Tesla, and SpaceX, attempting to build a complete AI supply chain "from electricity to computing power, from the ground to space."
The focus of AI competition has shifted to hardware and power; the model gap is now only a matter of time.
Musk stated that the current gap in model capabilities among major AI companies is mostly a matter of timing; the key to long-term competitiveness lies in the ability to continuously acquire and utilize sufficient computing power. He bluntly stated that while AI chip production is growing rapidly, the biggest constraint facing ground data centers is not the difficulty in obtaining chips, but rather the fact that the speed of power supply and grid construction is significantly lagging behind the demand for computing power.
He pointed out that the grid connection review and power equipment construction cycle of public power grids is lengthy, often taking years, which means that even if companies have acquired a large number of chips, they may not be able to immediately activate large-scale computing clusters due to insufficient power.
xAI is targeting computing power and data centers, aiming to first get the computing power actually online and operational.
Regarding the competitive landscape of the AI industry, Musk stated that xAI's strategy goes beyond model development, directly investing in data centers and power infrastructure. He emphasized that the key differentiator in the future AI industry will lie in its ability to be implemented in the real world—that is, whoever can complete power deployment in the shortest time to ensure the stable operation of acquired chips.
He stated frankly that with electricity and infrastructure becoming major bottlenecks, even if some AI companies can purchase a large number of chips, they may still be limited by issues such as power grids, cooling, and energy configuration, making it difficult to quickly form a large-scale computing power cluster. In contrast, xAI is attempting to gain an advantage in the speed of computing power deployment by building its own data centers and power systems.
Tesla is developing its own chips, with robots and energy systems becoming the backbone of AI expansion.
In its overall strategy, Tesla's role extends beyond electric vehicle manufacturing. Musk pointed out that Tesla is simultaneously developing its own AI chip for use in in-vehicle systems and the humanoid robot Optimus, and evaluating its potential applications in larger-scale computing scenarios.
Meanwhile, Tesla's investment in solar and energy storage systems is also seen as a crucial energy foundation for supporting the expansion of AI. Musk emphasized that electricity is a strategic resource for AI development, and insufficient energy supply will directly limit the growth potential of computing power.
On the manufacturing side, he also mentioned that Optimus robots can be used in factory construction, energy facilities and supply chain links in the future to help expand production capacity and infrastructure scale.
SpaceX is deploying a space-based computing platform in an attempt to circumvent ground-based regulations and power limitations.
Musk further pointed out that, in addition to power issues, ground-based data centers are also constrained by land acquisition, regulatory approvals, and the timeline for power grid construction. He believes that, in the long run, space may become a more scalable and flexible computing domain for AI.
He stated that compared to terrestrial environments, space-based solar energy avoids the effects of day-night cycles and weather, resulting in higher power generation efficiency and reducing reliance on large-scale energy storage systems. Through SpaceX's launch capabilities, computing devices and energy systems can be deployed in orbit in the future, establishing a new type of AI computing platform.
Under this framework, SpaceX's role is not limited to rocket launch services, but is also seen as part of the AI infrastructure system, responsible for solving the problems of computing space and energy deployment.
The three companies have integrated their functions to form an integrated AI supply chain layout.
Musk's vision for AI development presents a vertically integrated architecture where xAI, Tesla, and SpaceX complement each other's roles:
xAI: Focusing on AI Model and Computing Power Deployment
Tesla: Providing support for AI chips, robotics, and energy systems
SpaceX: Responsible for launch capabilities and space computing platforms
The overall strategic goal is to incorporate the most critical and bottleneck-prone nodes of the AI industry—namely, "electricity, chips, and computing facilities"—into its own system in order to reduce dependence on external supply chains and public infrastructure.
This article, "xAI, Tesla, and SpaceX Fully Integrated! A Comprehensive Guide to How Musk Creates a Complete AI Supply Chain Landscape," first appeared on ABMedia .
