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SpaceX Buys xAI, Adobe Ditches Animate, AI Race Heats Up!

TechCrunch Roundup: SpaceX Acquires xAI, China Bans Hidden Door Handles, Adobe Animate Shutting Down, and More

A flurry of tech news broke on Monday, ranging from Elon Musk's SpaceX acquiring his AI startup xAI to China implementing new safety regulations banning hidden car door handles. Other notable developments included Adobe's decision to discontinue Adobe Animate, the launch of a new student-focused startup accelerator, and Snowflake's AI deal with OpenAI.

SpaceX officially acquired xAI, Elon Musk's artificial intelligence startup, in a move aimed at building data centers in space, according to a memo posted on the rocket company's website. Musk, who is also the CEO of SpaceX, stated that current advances in AI are dependent on large terrestrial data centers, which require immense amounts of power and cooling. He added that global electricity demand for AI simply cannot be met with terrestrial solutions without imposing hardship on communities and the environment. The acquisition effectively creates the world's most valuable private company.

Meanwhile, China's Ministry of Industry and Information Technology published new safety rules mandating mechanical releases on car door handles. The new regulations, set to take effect on January 1, 2027, will prohibit the hidden, electronically actuated door handles popularized by Tesla and now found on numerous other electric vehicles in China. According to the new rule, each door (excluding the tailgate) must be equipped with a mechanically released external door handle, and vehicles must also have a mechanical release on the interior. The decision follows numerous high-profile fatal incidents where occupants became trapped in vehicles.

In other news, Adobe announced it would discontinue its 2D animation software, Adobe Animate, on March 1, 2026, as the company focuses on AI investments. The decision has been met with criticism from Adobe Animate users, who are concerned about the lack of alternatives that mirror Animates functionality. Enterprise customers will continue to receive technical support through March 1, 2029, to ease the transition, while other customers will have support through March of next year.

Two Stanford students, Roman Scott and Itbaan Nafi, announced the launch of Breakthrough Ventures, a $2 million startup accelerator program for college students and recent graduates nationwide. The program aims to fund businesses founded by students, expanding on a series of Demo Days hosted at Stanford starting in 2024. "This fundraise turns Breakthrough from just being a seasonal accelerator into a lifelong partnership with our founders," Nafi, a masters candidate at Stanford, told TechCrunch. Raihan Ahmed was tapped early last year to lead the accelerator.

Finally, cloud data company Snowflake entered into a $200 million multi-year AI deal with OpenAI, signaling the continued intensification of enterprise AI competition. Under the deal, Snowflake's 12,600 customers will have access to OpenAI models across all three major cloud providers. Snowflake employees will also have access to OpenAI's ChatGPT Enterprise. The two companies are partnering to build new AI agents and other AI products. "By bringing OpenAI models to enterprise data, Snowflake enables organizations to build and deploy AI on top of their most valuable asset using the secure, governed platform they already trust," said Snowflake CEO Sridhar Ramaswamy in a press release. Customers can now harness all their enterprise knowledge in Snowflake together with the world-class intelligence of OpenAI.

AI-Assisted Journalism

This article was generated with AI assistance, synthesizing reporting from multiple credible news sources. Our editorial team reviews AI-generated content for accuracy.

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