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This Week in Startups · 2026-02-03 · 62 min · 11,781 words

SpaceX + xAI deal gets us one step closer to Musk Industries | E2243

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SpaceX has acquired XAI. Elon's companies might merge ahead of the eventual IPO of SpaceX. So the news is that SpaceX has acquired XAI. We're still sorting out the exact financials of the deal, Jason, but the idea, as far as we can suss it out thus far, is that eventually we're gonna have a lot more compute, eventually we're gonna need a lot more power. Where is there a lot of available power?

Up in orbit where there's quite a lot of sunlight. Put all that together, SpaceX can send more mass up to orbit. We can build more data centers up there. XAI needs compute. So we're going to build XAI's AI feature in space via our dear friends of SpaceX.

But as we learned talking to the folks over at StarCloud, a startup that's building data centers in space, there's a big bet that Starship and other similar heavy launch vehicles will be able to bring up quite a lot more mass at a much lower price point. So I think the idea here is by 20Xing, the ability per rocket to get stuff up, this is all going to become quite feasible. This week in Startups is brought to you by Northwest Registered Agent. Get more when you start your business with Northwest. In 10 clicks in 10 minutes, you can form your company and walk away with a real business identity.

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