March 2026 | Yong-kwon Lee | Partner, Gorilla PE
In December 2025, humanity's intelligence escaped Earth's gravity for the very first time.
Starcloud, an NVIDIA-backed startup, successfully powered up an H100 GPU in orbit to train an AI model. After training nanoGPT on a Shakespeare dataset and running inference via Google’s Gemma model, they beamed a message back to Earth:
“Greetings, Earthlings.”
This message was no joke; rather, it was a declaration. The reason Google willingly let its model hitch a ride on this experiment is clear. Even the terrestrial giants have realized a harsh truth: they cannot advance to the next level of intelligence without knocking on the "Gate of Space."
The Hyperscaler Exodus to Space: From Scaling Law to Scaling Wall
The current bottleneck in the AI industry isn’t algorithmic. It is the inescapable physics of power and thermals. Terrestrial data centers are already devouring enough electricity to power small cities, slamming headfirst into government regulations and the Power Grid Wall.
To overcome such problems, Hyperscalers have already made their move. Google has launched "Project Suncatcher," deploying solar-powered satellites equipped with custom TPUs to build a space-based supercomputer. Microsoft is laying similar groundwork through its "Azure Space SDK," building the infrastructure for developers to run AI applications directly in orbit.
Their pivot to space is driven by a simple rationale: infinite, 24/7 solar energy and an absolute-zero (-273°C) cooling environment. Cooling facilities that cost billions of dollars to build on Earth come as a "standard feature" in space.
Who Holds the Key to the Gate?
Here lies the crucial detail. Starcloud’s H100 made it to space entirely thanks to a SpaceX Falcon 9. Even that historic experiment—bankrolled by NVIDIA and validated by Google—could not have gotten off the ground without SpaceX's launch vehicle. Ultimately, it was SpaceX that granted permission to write the opening sentence of the space computing era.
This is the ultimate asymmetry. No matter how brilliant the intelligence Google and Microsoft engineer, they do not possess the rockets to put it on the orbital circuit.
While Starcloud proved the concept with a single H100, SpaceX is capable of hauling tens of thousands of GPUs into orbit via Starship. While competitors test the waters with a satellite or two, SpaceX is constructing planetary-scale computing infrastructure, heavily leveraging its unmatched cost advantage in space transportation.
Theory Becomes Reality on the Battlefield
February 28, 2026. The U.S. and Israel initiated a massive military operation against Iran. Amidst the conflict, a profound shift was quietly confirmed.
The U.S. military deployed LUCAS (Low-Cost Uncrewed Combat Attack System) suicide drones directly integrated with SpaceX’s Starshield network. Detected from orbit, processed by AI, and executed by drones—it was the moment a space-based command and control system became fully operational in live combat.
Russian military analysts immediately sounded the alarm, noting that Starshield’s interference resistance and narrow communication beams make it virtually unjammable by enemy electronic warfare. The brutal asymmetry in combat power between those with space connectivity and those without was proven in real-time.
Accelerated by War: From the Golden Dome to the Moon
The war in Iran is entirely rewriting the U.S. defense industry playbook, with the Golden Dome at the epicenter.
With $13.4 billion already earmarked in the FY2026 defense budget, SpaceX is reportedly positioned to secure a $2 billion contract for a 600-satellite constellation. The SpaceX-Anduril-Palantir consortium has firmly established itself as the prime contractor for the Golden Dome. Within the massive $151 billion SHIELD framework, SpaceX is now the de facto monopoly supplier of the detection layer.
What’s even more fascinating is the Moon. In the immediate aftermath of the Iran conflict, both SpaceX and Blue Origin simultaneously announced a hard pivot toward lunar development, with the driving force behind it being the Pentagon. While Low-Earth Orbit (LEO) satellites remain vulnerable to enemy anti-satellite weaponry, a lunar base sits safely out of range. The Moon is becoming the ultimate strategic High Ground, and the gatekeeper of the launch vehicles headed to the Moon is, once again, SpaceX.
A narrative that began with space computing is rapidly compounding into the backbone of national defense infrastructure. The value of this "gate" is surging far faster than anyone anticipated.
Why Did SpaceX Need xAI?
Owning the gate doesn't solve everything. If SpaceX controls the gate but lacks the intelligence to generate value, it will ultimately be relegated to a mere infrastructure landlord, launching other companies' AI into orbit.
Which is where xAI comes in.
First, Grok gives SpaceX a direct mechanism to generate proprietary intelligence value. Second, xAI brings proven operational chops, having already built and managed Colossus, one of the largest computing clusters in the world. Third, it holds the ultimate fuel: the real-time data generated daily by the 600 million MAUs on X (formerly Twitter), completing flywheel that touches on all stages of the AI value chain.
SpaceX has the delivery trucks; xAI has the cargo and the navigation system.
The Merger: The 'Time Distortion' of Vertical Integration
Announced on February 2nd, the merger of SpaceX and xAI—boasting a combined valuation of $1.25 trillion(or more)—serves as the grand finale of this massive scenario. Launch vehicles (Starship), orbital infrastructure (Starlink/Starshield), AI models (Grok), and massive compute operations (Colossus) are now seamlessly fused into a single, closed loop.
There are whispers in the market that a $1.25T valuation is pulling the future of 2035 forward far too early, and rightfully so. However, the directionality—the reality that this inflection point is fast approaching—has already been validated by the desperate moves of Hyperscalers and the live-fire results on the Iranian battlefield.
Conclusion: The Gate Owner is Decided — And the Countdown Has Begun
When the space computing era fully matures, every player—Google, Microsoft, Amazon included—must pass through the gate known as SpaceX’s launch vehicles. Starcloud, Google, and the LUCAS drones in Iran were no exception.
The SpaceX-xAI merger is a historic declaration: humanity’s first platform to vertically integrate launch vehicles, orbital infrastructure, AI, and defense systems has officially arrived.
And now, this platform is heading to the public market. The pre-IPO window has essentially slammed shut.
"Greetings, Earthlings" was just the prologue. The owner of the gate has already been decided.
The author is a Partner at Gorilla PE and has made multiple investments in SpaceX and xAI.
※ This article reflects the author's personal views and does not constitute a recommendation or solicitation to invest in specific assets.