Musk Merges xAI Into SpaceX, Creating Trillion-Dollar AI Powerhouse
Elon Musk's SpaceX acquired his AI startup xAI, creating a combined entity valued at $1.25 trillion, according to a blog post by Musk on Monday. The merger positions the new entity as the world's most valuable private company.
Musk stated the acquisition was necessary to address the growing global electricity demand for AI, which he believes cannot be met with terrestrial solutions. "In the long term, space-based AI is obviously the only way to scale," Musk wrote, adding, "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."
The move highlights the increasing importance of AI in various sectors and the potential for space-based infrastructure to support its development.
HHS Used Palantir AI Tools to Target DEI Initiatives
A recently published inventory revealed that the Department of Health and Human Services (HHS) used AI tools from Palantir to screen and audit grants, grant applications, and job descriptions for noncompliance with President Donald Trump's executive orders targeting gender ideology and diversity, equity, and inclusion (DEI) initiatives. The use of Palantir's software for these purposes, which began in March 2025, was not publicly announced by either Palantir or HHS, according to Wired. During Trump's second term, Palantir received over $35 million in payments and obligations from HHS, but none of the transaction descriptions mentioned the work targeting DEI or gender ideology.
Epstein Files Released, Revealing Tech Elite Connections
The Department of Justice (DOJ) released what appeared to be its final tranche of files related to convicted sex offender Jeffrey Epstein. The release, totaling around 3.5 million pages, was in response to the Epstein Files Transparency Act of November 19, 2025. The files revealed connections between Epstein and several figures in the Silicon Valley billionaire set, according to Wired. While some, like Microsoft co-founder Bill Gates, had long been associated with Epstein rumors, others, such as Elon Musk, had less established connections prior to the release. It is important to note that the appearance of a name in the Epstein files does not necessarily imply wrongdoing.
AI Orchestration Hinges on Shared Memory
According to VentureBeat, shared memory and context are crucial for successful AI agents within an enterprise. Asana CPO Arnab Bose emphasized the importance of providing AI agents with detailed history and direct access, along with guardrail checkpoints and human oversight. "This way, when you assign a task, you're not having to go ahead and re-provide all of the context about how your business works," Bose said at a recent VB event in San Francisco. Asana launched Asana AI Teammates last year, integrating AI agents directly into teams and projects to foster collaboration.
OpenAI Launches Codex Desktop App for macOS
OpenAI released a new desktop application for its Codex artificial intelligence coding system, designed to transform software development by enabling developers to manage multiple AI coding agents in parallel. The Codex app for macOS functions as a "command center for agents," allowing developers to delegate coding tasks, automate repetitive work, and supervise AI systems that can run independently for up to 30 minutes before returning completed code, according to VentureBeat. "This is the most loved internal product we've ever had," OpenAI CEO Sam Altman told VentureBeat in a press briefing.
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