Elon Musk's business empire continues to expand. The Federal Trade Commission has granted approval for the acquisition of optical communications company Mesh Optical Technologies, marking another successful move in a recent series of acquisitions by SpaceX.
The FTC disclosed the transaction in a notice, indicating the antitrust review was placed on a fast-track approval process, signifying regulators see no significant competitive concerns with this merger.
Mesh was founded by former SpaceX engineers and specializes in optical communication technology for data centers, claiming its optical transceivers offer higher energy efficiency and lower latency compared to existing solutions. The company emerged from stealth mode just this past February, announcing the completion of a $50 million funding round led by Thrive Capital.
This acquisition is the latest development in a recent flurry of expansion activities by SpaceX. The company has already completed the acquisition of AI programming startup Cursor and has signed multiple computing power cooperation agreements with Anthropic, Google, and AI startup Reflection.
These strategic moves are closely tied to commitments made during the company's initial public offering, where SpaceX presented a core growth narrative centered on massive satellite deployment and space-based AI computing power.
Mesh Technology Aligns with SpaceX's Space Computing Strategy
Mesh is developing optical transceivers that use light signals to transmit information between data centers, with the company stating its technology outperforms current solutions in both energy efficiency and latency.
Founded by SpaceX engineers who previously worked on the laser communication technology for the Starlink internet satellite system, Mesh has expressed a desire to eventually apply its technology in space.
A key selling point for SpaceX's recent record-breaking IPO was its plan to launch up to one million satellites into low-Earth orbit to provide advanced computing capabilities for artificial intelligence.
Similar to Starlink, SpaceX's future space-based data center network—recently named Starmind—is also expected to rely on laser communication technology between satellites.
Acquisitions Intensify as IPO Commitments Accelerate
This potential acquisition follows closely on the heels of SpaceX's purchase of AI startup Cursor, demonstrating Musk is actively advancing the development roadmap presented to investors during the IPO process.
The introduction of Cursor is aimed at enhancing the code-generation capabilities of SpaceX's xAI laboratory, which is considered a relative weakness for the lab. Concurrently, SpaceX is progressing with data center construction in Tennessee and Mississippi.
On the commercialization front for computing power, SpaceX's recent agreements with Anthropic, Google, and AI startup Reflection involve opening its chip and data center resources to external clients, providing tangible support for the business model outlined during the IPO.
Beyond AI initiatives, another significant commitment within Musk's business portfolio is the creation of an "Everything App." This includes launching banking and payment services called X Money within the social platform X.
This week, Musk has begun rolling out access to X Money to a broader group of X Premium subscribers in the United States.
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