xAI 🤝 SpaceX

SpaceX Acquires xAI, Plans Data Centers In Space

SpaceX has acquired Elon Musk's AI startup xAI, creating the world's most valuable private company at a combined valuation of $1.25 trillion. The stated reason: Building data centers in space. 

The financials: 

• xAI is currently burning around $1 billion per month, while SpaceX generates up to 80% of its revenue from launching its own Starlink satellites. 

• Last year, xAI acquired X (formerly Twitter), which Musk claimed brought the combined valuation to $113 billion. 

• SpaceX has been preparing for an IPO as early as June 2026, though it's unclear if the merger affects that timeline. 

The play: By merging SpaceX and xAI, Musk is creating a vertical integration play where one company launches satellites that the other needs to run AI infrastructure. It's a self-reinforcing loop that locks in revenue for SpaceX while funding xAI's compute demands. 

Is it even possible? Musk wrote in a memo that “global electricity demand for AI simply cannot be met with terrestrial solutions,” and that space-based data centers powered by a constant stream of satellites will solve the problem. But the FCC requires satellites to be de-orbited every five years, meaning SpaceX would have a built-in refresh cycle for space data center infrastructure.

Snowflake Inks $200M Deal With OpenAI

Snowflake, a cloud-based data platform, just signed a $200 million multi-year deal with OpenAI. Under the agreement, Snowflake’s 12,600 customers gain access to OpenAI models across all three major cloud providers. 

What each side gets: Snowflake customers can now use OpenAI models on top of their existing data in a secure, governed environment. OpenAI gets a major enterprise distribution channel and a $200 million commitment. Snowflake maintains a "model-agnostic" strategy, letting enterprises choose which AI works best for each task.

The multi-partner trend: The announcement comes just two months after Snowflake signed a nearly identical $200 million deal with Anthropic in December. Then in January, ServiceNow announced multi-year deals with both OpenAI and Anthropic for similar reasons: giving customers and employees the ability to choose models based on the task at hand. 

An enterprise winner? Conflicting surveys from Menlo Ventures (which backs Anthropic) and Andreessen Horowitz (which backs OpenAI) each claim their respective portfolio companies lead enterprise adoption, making it hard to track true market share. For now, companies are hedging by signing deals with multiple players as they hunt for where AI can deliver tangible value. 

Firefox Lets Users Block All AI Features With One Toggle

Mozilla gave users the nuclear option on AI. Starting Feb. 24 with Firefox 148, the browser will include a "Block AI enhancements" master switch that shuts off every single generative AI feature (both current and future) with one click. The move follows a promise in December from Mozilla's new CEO, Anthony Enzor-DeMeo, that AI would remain optional in Firefox.

How it works: Users can flip the master switch to block everything, or use granular controls to disable specific AI tools like translations, tab grouping, PDF alt text generation, link previews, and the sidebar chatbot that connects to LLMs. 

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