Tesla invests $2 billion as xAI reaches $125 billion valuation

Key Takeaways

• Elon Musk merged SpaceX and xAI on February 2-3, 2026, to build space-based data centers for AI, addressing its massive energy and cooling needs.
• The merger valued xAI at $125 billion, with Tesla investing $2 billion in the company, aiming to create an "innovation engine" combining AI, rockets, and space internet.
• SpaceX plans to launch one million satellites for AI computing, predicting space will offer the lowest cost for AI within 2-3 years, a concept also explored by Google's Project Suncatcher.
• Wall Street markets slumped on February 3, 2026, with the Nasdaq down 1.4 percent, partly due to concerns that AI could increase competition and lower tech company profits.
• Geopolitical tensions, including a U.S. military drone shootdown in Iran, contributed to market volatility and drove significant gains in precious metals like gold.
• AI is transforming professional roles, with Naval Ravikant noting a shift from coding to "model operation" and the rise of "vibe coding" over traditional product management.
• UGREEN launched AI-Enabled NAS servers featuring Intel Core Ultra 7 processors, offering smart local AI features like Universal Search and Uliya Chat for data management.
• Chipotle gave away up to $1 million in free entrées on Game Day, opting to promote real food over AI-generated advertisements.
• A neuroscience study indicates that human and AI coaching are most effective when combined, with humans providing motivation and AI offering precise, memorable feedback.
• An SEC official suggested financial advisers could use AI agents to explain complex fund disclosure documents, aiming to improve accessibility for everyday investors.

Elon Musk Merges SpaceX and xAI for Space AI Power

Elon Musk merged his companies SpaceX and xAI on February 3, 2026, to build space-based data centers for artificial intelligence. Musk believes AI's massive energy and cooling needs are not sustainable on Earth, making space the only long-term solution using solar energy. The merger combines projects like SpaceX's Falcon and Starship rockets, xAI's Grok chatbot, and the social media platform X. Other companies like Jeff Bezos's Blue Origin and Google's Project Suncatcher also explore similar space-based AI solutions. SpaceX plans to launch a million satellites, with Starlink V3 satellites set to boost capacity.

SpaceX Acquires xAI to Create Innovation Engine

Elon Musk's SpaceX is taking over his AI company xAI, known for the Grok chatbot. Musk announced the merger, calling it an "innovation engine" that combines AI, rockets, space internet, and media. The deal valued xAI at $125 billion and SpaceX at $1 trillion. Tesla also invested $2 billion in xAI, despite some shareholder concerns. Musk believes space is the only long-term solution for AI's energy demands, with plans for AI satellites and future Moon and Mars bases. This merger could also help SpaceX prepare for a public stock listing.

SpaceX Buys xAI for Space AI Data Centers

Elon Musk's SpaceX is acquiring his AI company xAI, merging two major ventures on February 2, 2026. The merger aims to address the huge power and cooling needs of AI by building data centers in space. SpaceX sought permission from the Federal Communication Commission to launch one million satellites for this purpose. Musk predicts space will offer the lowest cost for AI computing within two to three years. This acquisition could also help both companies raise capital through a public listing, though some employees worry about a culture clash.

Markets React to AI and Geopolitical Tensions

On February 3, 2026, Wall Street slumped, with the Nasdaq falling 1.4 percent. Precious metals, South Korean stocks, and India's rupee, however, rebounded significantly. The Reserve Bank of Australia raised interest rates due to rising inflation, following the Bank of Japan, leading to speculation about similar moves by the U.S. Federal Reserve. Additionally, U.S.-Iran tensions increased after the U.S. military shot down an Iranian drone and armed boats approached a U.S. vessel in the Strait of Hormuz. These geopolitical events could complicate upcoming nuclear talks.

Markets Drop Amid AI Concerns and Iran Tensions

On February 3, 2026, Wall Street markets slumped due to worries that AI could increase competition and lower profits for tech companies. Meanwhile, precious metals like gold and silver saw sharp gains, with gold having its best day since 2008, driven by renewed U.S.-Iran tensions. The U.S. military shot down an Iranian drone, adding to geopolitical concerns. The Reserve Bank of Australia also raised interest rates, and President Donald Trump focused on getting long-term U.S. yields down. Key market moves included Nasdaq down 1.4 percent and Asian markets rallying.

Naval Ravikant Says AI Changes Coding and Product Management

Entrepreneur Naval Ravikant believes artificial intelligence is transforming software development roles. He suggests that "vibe coding," using natural language to describe what you want built, is replacing product management. This allows individuals with product ideas to create them directly, potentially making traditional product manager roles less common. Ravikant also states that the main technical work is shifting from coding to "model operation," which involves training and fine-tuning AI models. This new work requires skills like statistical intuition and experimental design. While AI offers efficiency, human oversight and strategic thinking remain crucial for complex projects.

Chipotle Gives Away $1 Million in Food on Game Day

Chipotle is giving away up to $1 million in free entrées on Game Day, choosing to highlight real food instead of airing AI-generated ads. When an AI ad plays after halftime, Chipotle will release a 30-second Instagram Reels video with a text-to-claim code. The first 100,000 fans to text 888222 will receive a free entrée. The company also introduced three Game Day Nacho Hacks, available on their app and website from Thursday, February 5 through Sunday, February 8. These kits let fans build loaded nachos at home with Chipotle's real ingredients, and Chicken al Pastor returns on February 10.

AI Etiquette in Group Chats and Personal Messages

The article explores the unspoken rules of using artificial intelligence in personal conversations, like group chats. The author notes that AI-generated content, such as a eulogy, can feel impersonal and lack genuine connection. While guidelines for AI use are appearing in schools and courts, there are no clear rules for friendly communications. The author argues that AI's efficiency can remove the meaningful effort from writing, making messages less personal. Using AI for replies, like to a "How's it going" text, can be seen as insulting because it shows a lack of "proof of work" and commitment to the relationship. This creates an imbalance where one person works less, making others work harder to understand.

GOG Accidentally Uses AI Art for Sale Banner

GOG admitted that its New Year Sale banner was mistakenly published using AI-generated art. The company stated the banner was a work-in-progress and should not have gone live. GOG, a small team, uses AI tools to improve efficiency and help with its goal of preserving DRM-free classic PC games. They acknowledged that AI art is a sensitive topic for many fans. GOG explained that experimenting with various technologies helps them achieve more with their limited resources, aiming to bring more games back to life and offer them DRM-free.

Lemon Learning Buys Aidaxis to Boost Desktop App Support

Lemon Learning, a European Digital Adoption Platform, acquired Aidaxis, a company specializing in desktop application solutions and AI. This acquisition allows Lemon Learning to offer support for both web and desktop applications, which is crucial for large businesses with mixed IT systems. Jean-Michel Aulas, CEO of Lemon Learning, said this move will provide a unified experience for all digital tools. Aidaxis's AI technology will be integrated to give smart guidance, aiming to make users more efficient and reduce training costs. The combined company will offer full support for digital transformation efforts.

UGREEN Offers Big Savings on New AI NAS Servers

UGREEN has launched its new AI-Enabled NAS Series, offering significant pre-order savings on its private cloud storage solutions. For example, the NASync iDX6011 Pro 64GB model is available for $1,559, a savings of $1,040. These powerful devices feature Intel Core Ultra 7 processors and fast memory. They also include AI features like Universal Search for quick file finding, Uliya Chat as a personal data assistant, and an AI album for organizing memories. UGREEN's new NAS servers aim to provide smart and secure local AI for better data management.

Human and AI Coaching Work Best Together

A neuroscience study revealed that people respond differently to human and AI coaching in sales. While human coaches inspire more motivation and trust, people remember more specific feedback from AI. Human coaching activates emotional brain regions, while AI feedback boosts focus and memory. This suggests that both are crucial for lasting behavior change. Sales leaders should combine AI's precision for identifying trends with human empathy to interpret data and provide support. The most effective approach involves hybrid coaching models, using AI for consistent tasks and humans for personal, understanding conversations.

SEC Official Suggests AI for Investor Chats

On February 3, 2026, a U.S. Securities and Exchange Commission official suggested that financial advisers could use artificial intelligence to talk with everyday investors. The director of the SEC's investment management division believes AI agents could help explain complex information from fund disclosure documents. This idea aims to make communication clearer and more accessible for retail investors, improving how funds and advisers interact with their clients.

Sources

• Musk merges SpaceX and xAI firms, plans for space-based AI data centres
• Elon Musk's SpaceX confirms it is taking over xAI
• SpaceX is acquiring xAI
• TRADING DAY AI, geopolitics take their toll
• TRADING DAY-AI, geopolitics take their toll
• Vibe Coding Is The New Product Management, Training And Tuning Models Is The New Coding: Naval Ravikant
• WHILE OTHERS AIR AI-GENERATED ADS, CHIPOTLE, WITH NO ARTIFICIAL INGREDIENTS, GIVES FANS $1 MILLION IN REAL FOOD ON GAME DAY
• The Etiquette of AI in the Group Chat
• GOG admits it used AI to create controversial New Year Sales banner
• Lemon Learning Acquires Aidaxis to Expand Desktop Application Coverage
• UGREEN’s AI-Enabled NAS Series Offers Up to $1,040 in Pre-Order Savings, A New Private Cloud Powered by Secure Local AI
• Human vs. AI Coaching: Lessons From the Front Lines of Sales Enablement
• SEC Official Floats Using AI In Adviser-Retail Investor Chats