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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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Former UK Ambassador Arrested Over Epstein Ties

Former United Kingdom ambassador to the United States, Peter Mandelson was arrested on Monday, by London’s Metropolitan Police on suspicion of misconduct in public office. He was released on bail the following day, pending further investigation.

The arrest stemmed from a criminal probe into his alleged leaking of sensitive government information to Jeffrey Epstein, the late convicted sex offender, while Mandelson served as UK Business Secretary from 2008 to 2010.

Mandelson was identified as having maintained a close relationship with Epstein, whom he once referred to as “my best pal” in a 2003 birthday book. The US Department of Justice’s release of over 3 million pages of Epstein-related documents in January 2026 revealed new evidence of their connection.

Emails from 2009 suggest Mandelson shared internal government assessments on ways to raise funds after the 2008 financial crisis, including plans to sell government assets. He also reportedly tipped Epstein about an upcoming EU bailout for Greece and confirmed plans to reduce a tax on bankers’ bonuses.

The documents show Epstein sent $75,000 in three payments to accounts linked to Mandelson or his then-partner, Reinaldo Avila da Silva. Mandelson has denied knowledge of these transfers and questioned the authenticity of the records.

A veteran Labour Party figure, Mandelson played a pivotal role in Tony Blair’s 1997 election victory and later served as European Commissioner. He was appointed UK ambassador to the US in February 2025 by Prime Minister Keir Starmer, despite knowing of his past ties to Epstein.

Mandelson was fired in September 2025** after earlier Epstein files surfaced. He resigned from the Labour Party and the House of Lords in early February 2026. Prime Minister Starmer publicly apologized for appointing him, calling the relationship a “lie” and acknowledging failures in the vetting process.

The arrest followed the recent detention of Andrew Mountbatten-Windsor (former Prince Andrew) on the same charge, highlighting a widening scandal involving high-profile figures and Epstein.

The Metropolitan Police conducted search warrants at two properties—Camden (London) and Wiltshire—linked to Mandelson. His arrest was reportedly prompted by a “baseless suggestion” he was a flight risk, according to his legal team at Mishcon De Reya.

The UK government agreed to release documents related to Mandelson’s appointment as ambassador, with the first tranche expected by early March, though some will be delayed due to the ongoing police investigation.

Mandelson has denied any wrongdoing and emphasized his commitment to cooperating with authorities to clear his name. The case remains under active investigation, with implications for UK political integrity and transparency.

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February 23, 2026
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Cartel Leader El Mencho Killed in Mexican Military Raid, Mayhem Ensues, Trapping Tourists

Nemesio Rubén Oseguera Cervantes, known as "El Mencho," was killed in a Mexican military operation on Sunday, in the town of Tapalpa, Jalisco. The operation, carried out by Mexican special forces, targeted the leader of the Jalisco New Generation Cartel (CJNG), one of Mexico’s most powerful and fastest-growing criminal organizations. He was wounded during a shootout and died while being transported to Mexico City.

Following his death, widespread retaliatory violence erupted across Mexico, particularly in Jalisco and neighboring states. Cartel members blocked highways with burning vehicles, torched businesses, and attacked security forces. In Jalisco alone, 25 members of the National Guard were killed in six separate attacks, and at least 73 people died overall, including security personnel, cartel members, and civilians. The violence disrupted transportation, forced school closures, and led to emergency measures across the region.

In Puerto Vallarta, a major tourist destination in Jalisco, residents and visitors described scenes of chaos as plumes of smoke rose over the city.

Airports in Puerto Vallarta and Guadalajara saw flight cancellations, and taxi and rideshare services were suspended. Over 250 roadblocks were reported nationwide, with 65 in Jalisco, prompting emergency protocols and shelter-in-place advisories.

In the aftermath, Hugo César Macías Ureña, known as "El Tuli", El Mencho’s right-hand man and top financial and logistics chief, was identified as the mastermind behind the wave of retaliatory violence.

El Tuli orchestrated roadblocks, arson attacks, and assaults on government facilities across Jalisco and other states, offering a 20,000-peso ($1,160) bounty for every soldier killed. He was killed in a shootout with security forces in El Grullo, Jalisco, during a separate operation. Authorities seized over 7.2 million pesos ($965,000 in U.S. currency), weapons, and his escape vehicle.

President Claudia Sheinbaum addressed the situation on Monday, stating that while violence was concentrated in certain areas, "in the vast majority of the national territory, activities are proceeding with complete normality." She reaffirmed Mexico’s sovereignty, pledging to strengthen cooperation with the U.S. while opposing any unilateral military action by the U.S. in Mexican territory.

General Ricardo Trevilla Trejo, Mexico’s Defense Secretary, revealed at a press conference on Monday, that the location of El Mencho, was pinpointed through surveillance of a trusted associate of one of his romantic partners.

The associate escorted the woman to a compound in Tapalpa, Jalisco, on Friday, where she met El Mencho. After she left the next day, authorities confirmed he remained at the site, enabling a coordinated operation by Mexican special forces, the National Guard, and Air Force units.

White House press secretary, Karoline Leavitt confirmed that the U.S. provided intelligence support for the operation, calling it a "great development" for Mexico, the U.S., and Latin America. U.S. Deputy Secretary of State Christopher Landau praised the operation, describing El Mencho as "one of the bloodiest and most ruthless drug kingpins." The U.S. had offered a $15 million bounty for information leading to his capture.

Oseguera Cervantes, 59, was a former police officer who co-founded the CJNG around 2007. The cartel is a major supplier of fentanyl, methamphetamine, and cocaine to the U.S. and has pioneered violent tactics, including drone attacks and mine installations. The U.S. had offered a $15 million reward for his capture.

The U.S. designated the CJNG as a foreign terrorist organization in January 2026. The operation marked a major escalation in U.S.-Mexico counter-cartel cooperation under President Sheinbaum, with intelligence sharing significantly expanded through joint channels tied to U.S. Northern Command.

Sheinbaum was widely criticized for rejecting Trump's offer to send in American troops to permanently root out the narcoterrorists who have operated freely in Mexico through extreme violence and bribery of corrupt politicians allegedly including the preisdent herself.

Mexico has reportedly quietly shipped nearly 100 suspected cartel drug traffickers to the US to stand trial charges after President Trump branded the groups foreign terrorist organizations last year — and pressured the Mexican government to cooperate.

The suspects include the brother of Nemesio “El Mencho” Oseguera Cervantes — the brutal Jalisco New Generation cartel (CJNG) leader who was killed by the Mexican army on Sunday.

The Justice Department said many of the 92 defendants released to the Americans had US extradition requests that were not honored during the Biden administration

The Mexican government elected to round up the dozens of wanted criminals after the Trump administration made clear it was taking these matters more seriously, the DOJ said.

“This is another landmark achievement in the Trump Administration’s mission to destroy the cartels,” Bondi said of the latest round of handovers announced last month.

The alleged cartel members, “including terrorists from the Sinaloa Cartel, CJNG, and others – will now pay for their crimes against the American people on American soil,” she added.

Among the first tranche of narco-criminals flown into the US by Mexican military aircraft last February was Antonio Oseguera Cervantes, nicknamed Tony Montana after “Scarface.” He allegedly helped lead CJNG alongside “El Mencho,” and he’s charged with cocaine and meth trafficking.

In January, the US took custody of Sinaloa cartel bigwig Pedro Inzunza Noriega, who along with his son, Pedro Inzunza Coronel, led one of the largest and most sophisticated fentanyl production networks in the world.

Together they were responsible for trafficking tens of thousands of kilograms of the deadly narcotic into the US.

In total the Mexican military has transported 92 dangerous fugitives to the US in three batches starting last February. They are wanted for crimes ranging from human- and drug-trafficking to money laundering, racketeering and murder.

The cases will be prosecuted in 13 states and the District of Columbia.

Those convicted will serve out their sentences in the US before being deported to their country of origin, according to the Justice Department — though many of them are facing life sentences for their crimes.

August’s roundup included Kevin Gil Acosta and Martin Zazueta Perez, leaders of the security apparatus for the Chapitos, a powerful faction of the Sinaloa Cartel that engages in prolific fentanyl trafficking.

Both men have led sicarios armed with military-style weapons like M-16s, AK-47s, AR-15s and grenade launchers in attacks against the Mexican government and military.

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February 21, 2026
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Huckabee Facing Backlash Over Greater Israel Remarks In Tucker Carlson Interview

American journalist Tucker Carlson on Friday's episode of his podcast, revealed that Israeli authorities detained him and his team at Ben-Gurion Airport after his interview with U.S. Ambassador to Israel Mike Huckabee, alleging his executive producer was taken into an interrogation room and his passport was confiscated.

The interview took place on or around February 18, 2026, at Ben Gurion Airport in Tel Aviv. Carlson and his team flew in (reportedly on a private jet), conducted the interview in the airport complex without ever leaving it, and departed hours later. He posted a photo on X with his business partner Neil Patel captioned “Greetings from Israel.”

Israel’s foreign ministry, denied any detention, claiming the encounter was routine security questioning applied to all travelers, including diplomats. And the U.S. Embassy emphasized that Carlson chose to remain within the airport’s VIP terminal and did not leave the premises.

Carlson called out the ambassador for going on social media and siding with Israeli authorities without asking him about what actually happened. He also revealed that the person he took a picture with was their Israeli driver who asked for it, contrary to the narratives spread on X by pro-Israel activists.

The American journalist filmed the two-and-a-half-hour interview with Huckabee published Friday, amid tensions over U.S.-Israel relations, the Israel-Gaza conflict (with a fragile truce in place), West Bank developments, and risks of U.S. escalation with Iran. Carlson, representing a populist-nationalist, skeptical-of-endless-foreign-aid wing of the right, repeatedly challenged Huckabee—a staunch Christian Zionist and longtime Israel supporter—on whether U.S. policy prioritizes Israeli interests over American ones.

The tone was testy, with pointed exchanges, exposing a clear rift in the Republican/MAGA coalition between traditional pro-Israel evangelicals and those wary of unconditional aid or Middle East entanglements.

Huckabee, a zealous evangelical Christian Zionist, said that Israel has a "Biblical right" to the entire Middle East, including areas from the Nile to the Euphrates, and said it would be "fine if they took it all." He defended Israel’s military actions in Gaza, claiming IDF operations are more humane than American's and asserting that many children killed were Hamas operatives or human shields.

Carlson, in turn, challenged these claims, expressing disbelief at justifying child deaths and questioning the moral basis of such policies. He also pressed Huckabee on the treatment of Christians in Israel, citing reports of discrimination.

The popular American journalist pressed Huckabee on biblical justifications for Israel’s claims, citing Genesis 15:18 (God’s covenant with Abraham promising land “from the river of Egypt [Nile/Wadi] to the great river, the Euphrates”). This territory would encompass modern Israel plus Lebanon, Syria, Jordan, parts of Iraq, Saudi Arabia, and Egypt.

"Does Israel have the right to that land?” (noting it would be “basically the entire Middle East”), Carlson asked.

Huckabee responded: “Not sure we’d go that far… It would be a big piece of land… It would be fine if they took it all.”

Carlson, a critic of unconditional U.S. support for Israel, has increasingly highlighted Christian persecution and Israeli overreach. Huckabee, a former governor and two-time presidential candidate, defended Israel’s sovereignty and rejected comparisons between Jewish and Palestinian national identities.

The popular journalist accused Huckabee of prioritizing Israel over the United States, especially in the context of the Gaza war. Carlson challenged Huckabee’s claim that the Israel Defense Forces (IDF) have a lower civilian casualty ratio than the U.S. military, calling it “very revealing” and questioning the ethics of such a comparison amid reports of over 70,000 deaths in Gaza, including many civilians. 

The interview, amid a growing rift within the conservative movement and Republican Party over Israel policy. There is growing skepticism among younger Republicans toward Christian Zionism, with a 2025 survey showing 53% of Republicans under 45 oppose renewing the $38 billion U.S. military aid package to Israel.

Huckabee’s “it would be fine if they took it all” remark triggered immediate, sharp condemnation on Saturday, from multiple Arab and Muslim governments and organizations including Egypt, Jordan, Saudi Arabia, the Organization of Islamic Cooperation, and the League of Arab States. They viewed it as endorsing expansionism, violating international law, and inflaming tensions.

The League of Arab States labeled Huckabee's comments “extremist,” “provocative,” and inconsistent with U.S. foreign policy. The league called it a violation of “all the basic principles and established norms of diplomacy,” “defying logic and reason,” and an attempt to “curry favor with the right-wing public in Israel.” It inflames sentiments at a sensitive time for Gaza peace efforts.

Egypt’s foreign ministry called the remarks a “blatant violation” of international law, asserting Israel has no sovereignty over occupied Palestinian or Arab lands.

Saudi Arabia called the comments “extremist rhetoric,” “reckless,” and “irresponsible”; and urged the U.S. State Department to clarify and distance itself.

Organization of Islamic Cooperation (OIC, 57 nations) condemned the “dangerous and irresponsible” comments as “an unacceptable call for the expansion of Israel” based on a “false and rejected historical and ideological narrative.” It fuels extremism and encourages illegal Israeli actions like settlement and annexation.

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