Elon Musk wants to build AI satellite factories on the moon—and now SpaceX will compete for NASA’s $10 billion in contracts to build a lunar base

Elon Musk's vision for AI satellite factories on the moon is taking shape as SpaceX has been selected to compete for NASA's $10 billion in contracts to build a lunar base. The SpaceX S-1 plan outlines the company's ambition to set up factories on the moon to create AI satellites, utilizing moon-extracted raw materials and taking advantage of the moon's weaker gravity to reduce costs.

NASA's goal is to establish a permanent lunar outpost for astronauts to inhabit, starting with robotic explorations of the moon's south pole in 2029 followed by building power systems, cargo transportation, and communications networks between 2029 and 2032. The agency will then focus on making the outpost livable for astronauts, enabling them to conduct more ambitious research and prepare for future journeys deeper into the solar system.

NASA awarded eight companies, including SpaceX, Blue Origin, and Lockheed Martin Space, a total of $10 billion in contracts under the Commercial Lunar Payload Services program to transport equipment and infrastructure to the moon. This includes SpaceX's task of launching satellites aboard a Starship to space in 2028 to test the technology necessary for maintaining communication lines.

The contracts demonstrate the increasing intertwining of federal space programs and private space sector ambitions, with NASA focused on establishing a location for astronauts to live and work, and SpaceX pursuing lunar space for manufacturing.