Tech Giants Make Bold Moves in AI, Energy, and Mobile Markets
Apple made its second-largest acquisition ever, while Elon Musk considered merging SpaceX with Tesla or xAI, and data centers drove a surge in gas projects, according to reports published Thursday.
Apple acquired Q.ai, a four-year-old AI audio startup, for $2 billion, according to the Financial Times. The acquisition marks Apple's second-largest ever, following its $3 billion purchase of Beats in 2014. Q.ai uses facial expressions to understand users without spoken words, according to Richard Lawler of The Verge. Apple did not disclose the terms of the deal.
Meanwhile, Elon Musk was reportedly considering consolidating his companies. Reuters initially reported that SpaceX and xAI were in discussions to merge ahead of SpaceX's planned IPO later this year. According to the publication, the merger would help with SpaceX's plans to launch data centers into space. Bloomberg later reported that SpaceX was considering a potential merger with Tesla or an alternative combination.
In other news, the U.S. is leading a global surge in new gas power plants being built, largely to satisfy the growing energy demand for data centers, according to Justine Calma of The Verge.
Separately, Apple announced that the iPhone had its best-ever quarter, with revenue hitting more than $85.3 billion. The company's Q1 2026 earnings report also revealed record-breaking revenue of $143.8 billion, up 16 percent compared to the same time last year, according to Emma Roth of The Verge. "The demand for iPhone was simply staggering, with revenue growing 23 percent year over year," Apple said.
The mobile market also saw continued interest in foldable phones. Allison Johnson of The Verge noted that while foldable phones come with great responsibilities and rewards, they are generally heavier, pricier, and have less capable cameras than standard slab-style phones. They are also still not as durable as regular smartphones.
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