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SpaceX Acquires xAI, As Elon Musk Plans Space AI Data Centers
February 02, 2026
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SpaceX has officially acquired artificial intelligence startup xAI, merging two of Elon Musk’s most ambitious ventures into a single, vertically-integrated entity valued at $1.25 trillion (SpaceX at approximately $1 trillion and xAI at $230–250 billion).

The acquisition, confirmed Monday, was announced via a public statement from SpaceX, with Musk stating: “SpaceX has acquired xAI to form the most ambitious, vertically-integrated innovation engine on (and off) Earth, with AI, rockets, space-based internet, direct-to-mobile device communications and the world’s foremost real-time information and free speech platform.”

The merger follows SpaceX’s February 2026 filing with the Federal Communications Commission (FCC) seeking approval to launch a constellation of up to 1 million satellites designed to function as orbital data centers. These solar-powered satellites, operating between 500 km and 2,000 km altitude in Sun-Synchronous Orbit, are intended to provide unprecedented computing capacity for AI models.

Musk emphasized that “the lowest cost way to generate AI compute will be in space” within two to three years, citing the limitations of terrestrial data centers in terms of power, cooling, and environmental impact. He argued that space offers “vast power and space” — specifically, the ability to harness solar energy on a massive scale — as the only viable long-term solution for AI’s exponential growth.

xAI, founded in 2023, owns the social media platform X and developed the AI chatbot Grok.

SpaceX, valued at $800 billion pre-merger, is preparing for a $1.5 trillion IPO later in 2026, with the merger seen as a strategic move to bolster investor confidence by linking space infrastructure with AI demand.

The combined entity will leverage SpaceX’s Starlink satellite network, Starship rocket system, and xAI’s AI research, aiming to fund future projects like self-sustaining lunar bases and Martian colonies.

SpaceX and xAI have long shared personnel and operational overlap; the merger formalizes this integration. This positions the combined entity for massive scale in AI and space, and could accelerate Starship development and multiplanetary goals.

 

Full SpaceX statement by Elon Musk:

SpaceX has acquired xAI to form the most ambitious, vertically-integrated innovation engine on (and off) Earth, with AI, rockets, space-based internet, direct-to-mobile device communications and the world’s foremost real-time information and free speech platform. This marks not just the next chapter, but the next book in SpaceX and xAI's mission: scaling to make a sentient sun to understand the Universe and extend the light of consciousness to the stars!

Current advances in AI are dependent on large terrestrial data centers, which require immense amounts of power and cooling. Global electricity demand for AI simply cannot be met with terrestrial solutions, even in the near term, without imposing hardship on communities and the environment.

In the long term, space-based AI is obviously the only way to scale. To harness even a millionth of our Sun’s energy would require over a million times more energy than our civilization currently uses!

The only logical solution therefore is to transport these resource-intensive efforts to a location with vast power and space. I mean, space is called “space” for a reason. 😂

By directly harnessing near-constant solar power with little operating or maintenance costs, these satellites will transform our ability to scale compute. It’s always sunny in space! Launching a constellation of a million satellites that operate as orbital data centers is a first step towards becoming a Kardashev II-level civilization, one that can harness the Sun’s full power, while supporting AI-driven applications for billions of people today and ensuring humanity’s multi-planetary future.

Orbital Data Centers

In the history of spaceflight, there has never been a vehicle capable of launching the megatons of mass that space-based data centers or permanent bases on the Moon and cities on Mars require. Even in 2025, the most prolific year in history in terms of the number of orbital launches, only about 3000 tons of payload was launched into orbit, primarily consisting of Starlink satellites carried by our Falcon rocket.

The requirement to launch thousands of satellites to orbit became a forcing function for the Falcon program, driving recursive improvements to reach the unprecedented flight rates necessary to make space-based internet a reality. This year, Starship will begin delivering the much more powerful V3 Starlink satellites to orbit, with each launch adding more than 20 times the capacity to the constellation as the current Falcon launches of the V2 Starlink satellites. Starship will also launch the next generation of direct-to-mobile satellites, which will deliver full cellular coverage everywhere on Earth.

While the need to launch these satellites will act as a similar forcing function to drive Starship improvements and launch rates, the sheer number of satellites that will be needed for space-based data centers will push Starship to even greater heights. With launches every hour carrying 200 tons per flight, Starship will deliver millions of tons to orbit and beyond per year, enabling an exciting future where humanity is out exploring amongst the stars.

The basic math is that launching a million tons per year of satellites generating 100 kW of compute power per ton would add 100 gigawatts of AI compute capacity annually, with no ongoing operational or maintenance needs. Ultimately, there is a path to launching 1 TW/year from Earth.

My estimate is that within 2 to 3 years, the lowest cost way to generate AI compute will be in space. This cost-efficiency alone will enable innovative companies to forge ahead in training their AI models and processing data at unprecedented speeds and scales, accelerating breakthroughs in our understanding of physics and invention of technologies to benefit humanity.

This new constellation will build upon the well-established space sustainability design and operational strategies, including end-of-life disposal, that have proven successful for SpaceX’s existing broadband satellite systems.

While launching AI satellites from Earth is the immediate focus, Starship’s capabilities will also enable operations on other worlds. Thanks to advancements like in-space propellant transfer, Starship will be capable of landing massive amounts of cargo on the Moon. Once there, it will be possible to establish a permanent presence for scientific and manufacturing pursuits. Factories on the Moon can take advantage of lunar resources to manufacture satellites and deploy them further into space. By using an electromagnetic mass driver and lunar manufacturing, it is possible to put 500 to 1000 TW/year of AI satellites into deep space, meaningfully ascend the Kardashev scale and harness a non-trivial percentage of the Sun’s power.

The capabilities we unlock by making space-based data centers a reality will fund and enable self-growing bases on the Moon, an entire civilization on Mars and ultimately expansion to the Universe.

Thank you for everything you have done and will do for the light cone of consciousness.

Ad Astra!
Elon

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Origin: SpaceX's Cursor Launches Code Hosting Platform, Github Rival Built For AI Coding Agents

Cursor, now owned by SpaceX, launched Origin, a code hosting platform built for AI coding agents, on Monday. The platform is currently in beta for paid users and allows developers to sync existing repositories from GitHub, with real-time two-way synchronization available--mirrors commit history, branches, and PR activity, keeping GitHub as the canonical source of truth until a team chooses to detach.

Built by the Graphite team acquired in late 2025, Origin is designed to handle high-frequency commits and parallel agent workloads, featuring AI-powered automated merge conflict resolution and sub-400-millisecond global sync latency.

Unlike GitHub, which was built for human-first developers, Origin is architected to manage fleets of AI agents committing simultaneously, addressing the bottleneck of manual code review. Early previews highlighted capabilities such as 296,000 clones per hour and the ability to handle 22 commits per second per repository.

The platform integrates directly into the Cursor IDE, featuring a Codebase tab for repository management and a Review tab for automated pull request processing. Instead of forcing developers to jump between a local editor and an external browser tab to check pull requests or review builds, Origin integrates repository management straight into Cursor.

Initial integrations include Vercel, Buildkite, and Depot, with support for existing GitHub Actions workflows to facilitate CI/CD pipelines.

"You can now host your repos in Cursor Origin and deploy to Vercel via Cursor Origin which is itself hosted on Vercel," Vercel chief executive Guillermo Rauch posted on X. "And unlike GitHub, it's online 😁" Asked why he was smiling, Rauch replied: "trying to make light of the situation. We ourselves are stuck because of github rn!"

Origin was first unveiled at Cursor’s Compile conference on June 16, 2026, alongside a new iOS app and a 1.5-trillion-parameter model. The launch follows SpaceX’s $60 billion all-stock acquisition of Cursor, which aims to consolidate control over the entire software development pipeline from editor to infrastructure.

By launching Origin, SpaceXAI and Cursor are shifting AI development from the editor level down to the infrastructure layer. Rather than relying on Microsoft-owned GitHub to store code while using Cursor to write it, Origin creates a vertically integrated ecosystem.

GitHub has been unreliable, in recent years and was down for several hours Monday, as Cursor launched Origin. An analysis by LeadDev counted 257 incidents between May 2025 and April 2026, 48 of them major — roughly one significant disruption per week. February was the worst month on record with 37.

GitHub Actions alone accounted for 57 outages in twelve months. Chief technology officer Vlad Fedorov has said the platform "wasn't built for the scale it's now being asked to handle" and must design for 30 times today's load. In an April engineering post covered by InfoQ, the company acknowledged it "failed to meet its own reliability standards," citing rapid growth, tight architectural coupling and inadequate load shedding. Monday's outage was the seventh incident on GitHub's status page in fifteen days.

The fatigue is audible. "GitHub really doesn't feel built for the agent era," one developer wrote on X as Origin went live. "It goes down way too often, but until now there haven't been many real alternatives."

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USS Abraham Lincoln Condition Deteriorates As Gulf Leaders' Frustrations With Trump Admin Over Iran War, Grow

Sailors aboard the USS Abraham Lincoln (CVN-72) have reported severely deteriorating conditions to family members, including food shortages, broken plumbing, and mental health crises, following a record-breaking deployment of over 250 consecutive days at sea amid the Iran war.

There are unconfirmed reports of "low marale," sailors writing "anti-Israel and anti-war messages," using words like "goyims" and mocking President Donald Trump's repeated claims about iminent peace deals with Iran. Text messages published online and reported by military observers showed extreme frustration with the indefinite deployment. Some sailors reportedly wrote home that they felt trapped in an unclear mission, with messages such as "the Navy does not care" and questioning U.S. involvement in the wider Middle Eastern conflict.

Supply chain disruptions reportedly stemming from Iranian attacks on the Naval Support Activity in Bahrain forced the U.S. Navy to relocate its primary logistics hub to Diego Garcia, located roughly 3,540 kilometers from operational areas. This distance, combined with the "highly contested environment," have severely lengthened the carrier’s replenishment timelines.

Supplies that previously moved seamlessly via supply ships out of Bahrain began taking weeks to arrive, stalling shipments of mails, spare parts, fresh food, hygiene items (soap, toothpaste), and mails, while causing care packages to be lost or delayed for months. 

Sailors reportedly described eating dry cereal due to a lack of milk, consuming rotten meat, and dealing with moldy showers and non-functional toilets, which family members argue has created unbearable living conditions for the 5,000 personnel on board.

Although the Navy acknowledged logistical challenges like clogged toilets and ventilation issues causing mildew, officials maintain that sailors have access to clean water and healthy meals, attributing the hardships to the necessities of combat operations against Iran.

While families and lawmakers cite reports of suicide attempts and overboard incidents linked to exhaustion and supply failures, the Navy and Defense Secretary Pete Hegseth have disputed these accounts as "completely misrepresented," saying there is no confirmed increase in suicidal ideation on the career. Acting Navy Secretary Hung Cao acknowledged that crew members were "pushed to their limits" and confirmed temporary meal adjustments, but maintained that no core operational capabilities or meals were dropped.

While opposition Democrat lawmakers demand investigations into the "unbearable" conditions and the mental health toll on the crew, Trump downplayed the concerns, remarking that the deployment was "not nearly long enough," even as the Navy announced plans to replace the USS Abraham Lincoln with the USS George Washington.

 

 
Gulf Leaders' Frustrations With Trump Admin Over Prolonged Iran War, Grow

Meanwhile, frustration with the Trump administration has reached a critical point among U.S. allies in the Persian Gulf, driven by concerns that he lacks the diplomatic capability to end the prolonged war with Iran. Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, and Bahrain are now reportedly united in their aggravation with Washington.

The Gulf nations reportedly feel "unnecessarily entangled" in a conflict they did not start but are forced to endure; with one Gulf official saying bluntly, "Trump started this war, and we are paying the price," and noting that anger toward the U.S. is at its highest level since joint U.S.-Israeli attacks on Iran in February 2026.

Gulf leaders complain that Trump’s policy is "erratic" and "unpredictable," characterized by repeated threats against Iran followed by sudden withdrawals citing diplomatic progress that never materializes.

The breakdown in trust is exacerbated by the failure of recent diplomatic initiatives, specifically the June Memorandum of Understanding (MOU) between the U.S. and Iran. Gulf leaders dismissed the agreement as a "joke" because it failed to address their top security concerns: Iran’s ballistic missile arsenal and its support for proxy forces. Furthermore, the continued closure of the Strait of Hormuz has inflicted severe economic damage on Gulf economies, yet the U.S. has been unable to force its reopening despite months of conflict.

For the first time, this diplomatic friction has led to concrete strategic debates regarding the presence of U.S. military installations. While Qatar and Bahrain currently host large U.S. bases essential to American regional power projection, officials in multiple Gulf states have begun questioning the utility of continuing to host these facilities. The concern is that these bases make them less safe, not more safe, by painting them as primary targets for Iranian missile and drone strikes without guaranteeing a decisive U.S. victory or security guarantee.

For now, a complete expulsion of U.S. forces is not imminent. Gulf states remain heavily dependent on Washington for security support, intelligence, and arms supplies. As one official reportedly admitted, "Whatever we do, we cannot say no to the United States." However, the mere discussion of closing bases signals a significant erosion of the trust that has underpinned Gulf security architecture for decades.

Gulf nations are actively diversifying their security and defense partnerships. A pivotal development occurred last week with the signing of the Makkah Defense Agreement, a mutual defense agreement between Saudi Arabia, Turkey, and Pakistan. Senior European officials reportedly describe this pact as a direct "signal to the U.S." that regional powers are preparing for a future where American guarantees are insufficient.

This shift indicates that while the U.S. remains a primary partner, Gulf leaders no longer view it as the sole guarantor of regional security. The strategy involves building a network of Sunni Muslim alliances to manage local threats independently, reducing vulnerability to the whims of U.S. domestic politics and presidential decision-making.

While the White House reportedly maintains that Trump has "extraordinary relationships" with Gulf partners and that Iran is "more isolated than ever," the reality on the ground suggests a deepening rift. Analysts warn that unless a clear strategy emerges, the security lockdown and economic strain could destabilize the region further, pushing Gulf states to seek accommodations with Tehran independent of Washington.

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Globalstar 2-R Launch 1, USSF-366: SpaceX Doubleheader Missions 38 minutes Apart

SpaceX set a new operational record by launching two Falcon 9 rockets just 38 minutes 31 seconds apart on early morning, UTC, Sunday, (Aug. 16), besting its old record—set on Aug. 31, 2024 with two Starlink missions — by 27 minutes. The Elon Musk's company already launches far more frequently than any other oufit, and operates the largest satellite constellation—about 11,000 satellites and counting.

The first mission, Globalstar 2-R Launch 1, lifted off at 0112 UTC from Space Launch Complex 40 (SLC-40), at Cape Canaveral Space Force Station in Florida, carrying eight satellites for the Louisiana-based telecom company Globalstar to replenish its low Earth orbit (LEO) constellation.

The Falcon 9 first stage booster B1090, marking its 14th mission, landed as planned at Landing Zone 40 (LZ-40), Cape Canaveral, about eight minutes after liftoff. The second stage deployed all eight satellites to orbit successfully over a six-minute window beginning 56.5 minutes after launch.

While the second stage was powering its way to LEO to deploy Globalstar 2-R Launch 1, another Falcon 9 launched at 0150 UTC from Space Launch Complex 4 East (SLC-4E) at Vandenberg Space Force Base in California, on a national security USSF-366 mission carrying a classified payload for the U.S. Space Force.

The national security flight's Falcon 9 first stage booster B1088, which completed its 18th flight, landed on the autonomous droneship "Of Course I Still Love You" in the Pacific Ocean about 8.5 minutes after liftoff.

The USSF-366 payload is believed to be a batch of classified LEO satellites using SpaceX's Starshield satellite bus for national security purposes. SpaceX's mission description doesn't reveal when and where the Falcon 9's upper stage will deploy the payloads.

Sunday's launches were part of a busy period for SpaceX, which continues to expand its launch cadence and the Starlink broadband network. The doubleheader brought the tally to 96 Falcon 9 launches in 2026— about 75% of which are Starlink missions—and marked the 650th successful Falcon booster landing in SpaceX history.

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