Elon Musk has announced a groundbreaking plan to establish a satellite manufacturing factory on the Moon, as reported by multiple sources including Daily Times and Geo Business on February 11, 2026. This factory, spearheaded by Musk's company xAI, will utilize a 'mass driver' system to efficiently launch AI-powered satellites into space, leveraging the Moon's low gravity to optimize production processes. According to Intellectia, Musk emphasized during an xAI all-hands meeting that this initiative is part of a broader strategy to enhance xAI's computational capabilities and gain a competitive edge in the AI and space technology sectors. The proposal also aligns with SpaceX's shift in focus from Mars colonization to lunar development, with plans to establish a self-sustaining lunar city within a decade, as highlighted by NEWS9 Live.