Elon Musk outlined a lunar AI satellite factory plan during an all-hands meeting at xAI on February 10, 2026. He told employees that the company would need a manufacturing facility on the Moon to build satellites equipped with artificial intelligence computing systems, stating, “You have to go to the Moon.”

Musk said the proposal includes a large mass driver, described as a catapult designed to launch satellites from the lunar surface into space. He noted that the concept draws inspiration from the science fiction novel The Moon Is a Harsh Mistress. The proposed factory aims to secure greater computing capacity for AI development.
Mission Timelines: Moon vs Mars
Musk compared lunar and Martian missions, highlighting logistical differences:
| Destination | Launch Frequency | Travel Time | Estimated City Timeline |
| Moon | About every 10 days | About 2 days | Around 10 years |
| Mars | Every 26 months | About 6 months | 20 years or more |
He described the Moon as a stepping stone before future Mars missions and said building a lunar city could be possible within a decade.
Last week, xAI merged with SpaceX, combining artificial intelligence and aerospace efforts. The lunar AI satellite factory plan reflects a shift toward near-term lunar infrastructure to scale AI computing and space logistics, marking a strategic acceleration compared with earlier emphasis on Mars colonization.