Elon Musk believes the best way to solve the difficulties of building AI data centers on earth is to move them into outer space. His merger this week of his rocket company SpaceX with his artificial intelligence company xAI could help get them there.

Musk is combining rocket maker SpaceX with his AI startup, the largest tie-up in his expansive business portfolio.

Musk's space exploration company and his AI start-up are merging.