SpaceX Acquires xAI in Push for Space-Based Data Centers
SpaceX, the spaceflight company led by Elon Musk, acquired xAI, Musk's artificial intelligence startup, on Monday, February 2, 2026, to create space-based data centers, the company announced. The merger aims to address the growing energy demands of AI by building data centers in space, according to Musk.
Musk, who is also the CEO of SpaceX, explained in a memo posted on the company's website that current advances in AI are dependent on large terrestrial data centers, which require immense amounts of power and cooling. "Global electricity demand for AI simply cannot be met with terrestrial solutions, even in the near term, without imposing hardship on communities and the environment," he wrote.
The Verge reported that this merger combines SpaceX and xAI (which also owns X) into one entity. According to an announcement from Musk, the combined company will be "the most ambitious, vertically-integrated innovation engine on (and off) Earth, with AI, rockets, space-based internet, direct-to-mobile device communications and the worlds foremost real-time information and free speech platform."
The acquisition comes as xAI has faced criticism for the impact of its terrestrial data centers on local communities, such as those near its facility in Memphis, Tennessee, according to TechCrunch.
In other tech news, Waymo, the Alphabet-owned autonomous vehicle company, raised $16 billion as it plans to grow its fleet of driverless taxicabs this year to more than a dozen new cities internationally, including London and Tokyo, according to TechCrunch. The funding round, which values Waymo at $126 billion, was led by Dragoneer Investment Group, DST Global, and Sequoia Capital. Parent company Alphabet supported the round and maintained its position as majority investor.
Adobe announced that it will discontinue its 2D animation software, Adobe Animate, on March 1, 2026, as the company focuses on AI investments, TechCrunch reported. Enterprise customers will receive technical support through March 1, 2029, while other customers will have support through March of next year. The decision has been met with criticism from Adobe Animate users, who are concerned about the lack of alternatives that mirror Animates functionality.
Two Stanford students announced Monday that they have raised $2 million for an accelerator program called Breakthrough Ventures, which aims to fund businesses founded by college students and recent graduates nationwide, according to TechCrunch. Roman Scott and Itbaan Nafi began building the accelerator program after hosting a series of popular Demo Days at Stanford starting in 2024 and decided to expand it after students were achieving success. "This fundraise turns Breakthrough from just being a seasonal accelerator into a lifelong partnership with our founders," Nafi told TechCrunch.
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