IPO commitments are accelerating! Musk approved to acquire optical communication company Mesh, advancing space computing strategy.

Elon Musk's business empire continues to expand. The U.S. Federal Trade Commission (FTC) has approved the acquisition of optical communications company Mesh Optical Technologies, marking another milestone in SpaceX's recent wave of intensive mergers and acquisitions.

The FTC disclosed the deal in a notice, stating that the transaction's antitrust review was placed on a fast-track approval process, indicating that regulators see no significant competition issues with the acquisition.

Mesh was founded by former SpaceX engineers and focuses on data center optical communication technology. The company claims its optical transceivers offer higher energy efficiency and lower latency compared to existing solutions. It just exited "stealth mode" in February, announcing the closing of a $50 million funding round led by Thrive Capital.

This acquisition is the latest development in SpaceX's recent expansion spree. Prior to this, SpaceX completed the acquisition of AI programming startup Cursor and signed multiple computing power cooperation agreements with Anthropic, Google, and AI startup Reflection.

These moves are closely tied to the promises made by SpaceX during its initial public offering (IPO), where the company outlined large-scale satellite deployment and space-based AI computing power as core growth narratives.

Mesh technology aligns with SpaceX's space computing power strategy

Mesh is developing optical transceivers that rely on light signals to transmit information between data centers. The company claims they outperform existing solutions in both energy efficiency and latency.

Mesh was founded by SpaceX engineers who previously worked on laser communication technology for the Starlink internet satellite system, and says it hopes to apply its technology to the space sector in the future.

SpaceX, which recently completed a record-breaking IPO, highlighted among its key selling points for the public offering a plan to launch up to 1 million satellites into low Earth orbit to provide complex computing power for artificial intelligence.

Similar to Starlink, SpaceX's future space data center network—recently named Starmind—is also expected to rely on laser communication technology between satellites.

M&A activity intensifies, IPO promises accelerate

This potential acquisition follows SpaceX's purchase of AI startup Cursor, showing that Musk is advancing the blueprint he presented to investors during the IPO.

Bringing in Cursor aims to enhance the code generation capabilities of SpaceX's xAI lab—considered a relatively weak point for the lab. At the same time, SpaceX is pushing forward with data center construction in Tennessee and Mississippi.

On the commercialization front for computing power, SpaceX recently signed multiple partnerships with Anthropic, Google, and AI startup Reflection, opening up its chip and data center resources to external clients, providing concrete support for the business model outlined in its IPO.

Beyond AI initiatives, another key promise within Musk's business empire is the creation of a "super app (Everything App)." This includes launching a banking and payment service called X Money within the social platform X.

This week, Musk began expanding access to X Money for some U.S. X Premium subscribers.

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