Comment by vidarh

Just scratching at the surface, assuming the increase in production capacity is only realistically possible if you can bring prices down (or this "project" would start to consume a proportion of economic output large enough to seem implausible), you can address the intermittency problem in several ways:

Driving down the cost makes massive overprovision a means of reducing the intermittency because you will be able to cover demand at proportionally far lower output, which also means you'll be able to cover demands in far larger areas, even before looking at storage.

But lower solar costs would also make storage more cost effective, since power cost will be a lower proportion of the amortised cost of the total system. Same with increasing transmission investments to allow smoothing load. Ever cost drop for solar will make it able to cover a larger proportion of total power demand, and we're nowhere near maximising viable total capacity even at current costs.

A whole lot of industrial costs are also affected by energy prices. Drive down this down, and you should expect price drops in other areas as well as industrial uses where energy expensive processes are not cost-effective today.

The geopolitical consequences of a dramatic acceleration of the drop in dependency on oil and gas would also take decades to play out.

At the same time, if you can drive down the cost of energy by making solar so much cheaper, you also make earth-bound data centres more cost-competive, and the cost-advantage of space-bound data centres would be accordingly lower.

I think it's an interesting idea to explore (but there's the whole issue of cooling being far harder in space), but I also think the effects would be far broader. By all means, if Musk wants to poor resources into making solar cheap enough for this kind of project to be viable, he should go ahead - maybe it'll consume enough of time to give him less time to plan a teenage edgelor - because I think the societal effects of driving down energy costs would generally be positive, AI or not, it just screams of being a justification for an xAI purchase done mostly for his personal financial engineering.