Freakonomics Radio · 2026-07-31 · 56 min · 9,564 words

683. In the New Space Race, Who Makes the Rules?

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A couple months ago, Elon Musk became the world's first trillionaire after his rocket company SpaceX had the largest IPO in history. Two weeks later, Musk lost his trillionaire status, at least temporarily. Why? Part of the answer is AI. because SpaceX is also now an AI company, having gobbled up XAI, another Musk firm.

And AI investments are, as you probably know, pretty volatile at this moment. But SpaceX, along with several other big players in the new space race, are still betting huge on AI. Specifically, Putting AI in space. This would mean fewer power plants and data centers on our planet. It could also mean hundreds of thousands of new objects in the skies increasing the risk of collision. environmental degradation, and perhaps much more.

In last week's episode, my free economics friend and co-author Steve Levitt talked to some of the people involved in Google's attempt to move AI to space. I fully expect that by the year twenty one hundred The great majority of energy. Used in the solar system. we'll be going toward AI.

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