The merger of SpaceX with xAI is something we have never seen: a conglomerate that has devoured the separation of powers

SpaceX's acquisition of xAI marks a significant consolidation of power within Elon Musk's technology empire, blurring lines between private enterprise and critical infrastructure. This strategic move integrates companies involved in space launches, military contracts, and advanced AI development, raising questions about oversight and control in sensitive technological domains. The combined entity's access to classified data and its role in global communication networks underscore its growing influence. The core of this consolidation lies in the operational overlap between SpaceX and xAI. SpaceX, a major contractor for the Pentagon, launches classified military satellites, while xAI's Grok AI is reportedly processing data within the Department of Defense, including information from military bases. Furthermore, SpaceX's Starlink satellite internet service plays a crucial role in providing connectivity in conflict zones like Ukraine, indirectly influencing information flow and operational capabilities. This unprecedented integration creates a private conglomerate with capabilities that draw parallels to historical sovereign entities, possessing control over space-based assets, global communication networks, and potentially sensitive military intelligence. The challenge for regulators is immense, as the West has increasingly relied on these private entities for critical services, making it difficult to impose traditional limitations without risking disruption to national security and essential services. The question of how to regulate entities integral to military operations and global connectivity remains a pressing concern.