DOJ Backs xAI in Pollution Lawsuit, Raising Stakes for SpaceX Shares

The DOJ has intervened in a Clean Air Act lawsuit against xAI, asking a federal court to dismiss the case and arguing that shutting down xAI’s gas turbines would threaten U.S. national, economic, and energy security. The article says the turbines power xAI’s Colossus 2 data center near Memphis and that the government’s position links the facility to military AI use, including the Grok model’s clearance for Secret and Top Secret networks. Because SpaceX acquired xAI in an all-stock deal, the case now carries direct implications for newly listed SpaceX shares (SPCX.OQ). The intervention may support bullish sentiment for SPCX by reinforcing its strategic AI and defense relevance, though environmental and legal risks remain unresolved and a preliminary injunction hearing is expected in August.