Elon Musk is reportedly seeking to expand his business portfolio once again, following the acquisition of AI startup Cursor, in a move that could help fulfill SpaceX's public listing commitments.
According to information disclosed by the U.S. Federal Trade Commission (FTC), Musk has recently received approval to acquire Mesh Optical Technologies Corp., though specific details of the transaction have not been made public.
Mesh was founded by three former SpaceX engineers and specializes in optical communication technology for data centers. Its long-term vision is to establish a solar system-wide network of optical connections linking humans, computers, spacecraft, and deep-space probes. The company's co-founders have been involved with the laser communication technology for SpaceX's Starlink internet satellite system.
As described on its website, Mesh's first product, the Alpha C1, is an optical transceiver capable of linearly converting electrical signals to optical signals at a rate of 1.6 terabits per second (Tbps). This transceiver is designed to offer superior energy efficiency, lower latency, and higher reliability for AI workloads and power-constrained data centers. The company has secured over $50 million in funding, led by Thrive Capital.
This acquisition is seen as potentially providing a key technological advantage for SpaceX. The optical communication technology developed by Mesh could assist SpaceX in advancing its strategy for computing power in space.
SpaceX has previously stated in IPO-related documents that it plans to manufacture, launch, and operate up to one million AI computing satellites. The core objective is to build distributed AI computing clusters in space to alleviate issues such as power shortages and high cooling costs in terrestrial data centers. Musk recently confirmed on social media that the planned orbital AI data center project is named Starmind.
In addition to acquisition moves, SpaceX has signed several computing power contracts around the time of its planned listing. The company has announced collaborations with Anthropic, Google, and AI startup Reflection, opening up its chip and data center resources to external clients.
However, SpaceX's space-based computing strategy has recently faced some skepticism. SoftBank Group founder and CEO Masayoshi Son stated at an annual shareholder meeting that the concept of space data centers, proposed by figures like Musk, holds "little significance." He argued that the outcome of AI competition will primarily be determined by computing resources on Earth, not future orbital computing facilities.
Son noted that while the space environment offers the potential to lower electricity costs using solar power, electricity constitutes only a small portion (about 7%) of data center operating costs. In contrast, core costs like chips and hardware account for up to 93%. The high expenses associated with launching equipment into orbit, subsequent maintenance, and communication latency would far outweigh any potential savings on power.
In the secondary market, SpaceX's performance has been volatile recently, experiencing a roller-coaster ride. Its share price fell from $201.80 per share on June 16th to $153.23 per share on June 26th.
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