Tech Giants Make Bold Moves in AI, Energy, and Mobile Markets
Apple and Elon Musk-led companies dominated tech news on January 29, 2026, with significant developments in AI, energy consumption, and potential corporate mergers. Apple made its second-largest acquisition ever, while Musk explored consolidating his various ventures. Simultaneously, the iPhone recorded its best-ever quarter, and a surge in data centers fueled a new demand for gas power plants.
Apple acquired Q.ai, a four-year-old AI audio startup, for $2 billion, according to the Financial Times. Q.ai specializes in using facial expressions to understand users, even without spoken words. This acquisition marks Apple's second-largest ever, following the $3 billion Beats purchase in 2014, according to The Verge. Apple did not disclose the terms of the deal.
Meanwhile, Elon Musk was reportedly considering merging SpaceX with either Tesla or xAI, according to Reuters and Bloomberg. The potential merger with xAI would support SpaceX's plans to launch data centers into space. Jay Peters of The Verge reported that discussions were underway, although the specific structure of any potential deal remained unclear.
In other news, Apple announced record-breaking iPhone revenue for the past quarter, surpassing $85.3 billion, according to Emma Roth of The Verge. This surge contributed to a record-breaking overall revenue of $143.8 billion for the company, a 16 percent increase compared to the same period last year. "The demand for iPhone was simply staggering, with revenue growing 23 percent year over year," Apple stated in its Q1 2026 earnings report.
However, the growing demand for data centers, particularly those powered by AI, was driving a surge in new gas power plant projects in the US, according to Justine Calma of The Verge. The US is now leading a global surge in new gas power plants being built in large part to satisfy growing energy demand for data centers.
Despite advancements in the mobile market, including the availability of foldable phones, Allison Johnson of The Verge noted that these devices still come with trade-offs. "A foldable phone isnt for the faint of heart," Johnson wrote. "Theyre generally heavier, pricier, and have less capable cameras than a standard slab-style phone. Theyre also still not as durable as regular smartphones."
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