Hello there.

Happy Friday! Turns out, all of Elon’s pet projects might be hitching a ride on this SpaceX debut.

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And Zuck’s diversifying too…guess that’s the play when the world’s on fire. Anyway, let’s get into it.

So SpaceX is gearing up for its big IPO moment, and if you own Tesla stock, this actually matters to you more than you might think. Here's the deal: Elon Musk just merged SpaceX with his AI company xAI back in February, and now there's growing chatter that Tesla could be next on the merger list.

Why should Tesla shareholders care? Well, Tesla already quietly owns a piece of SpaceX after a $2 billion investment in xAI got converted to SpaceX shares. It's a tiny slice (less than 1% of SpaceX's expected value), but it's the start of something potentially bigger. SpaceX and Tesla are also building a joint "Terafab" facility together, which is basically a giant factory where both companies will share operations. That's a pretty obvious sign these two might eventually become one company.

Wedbush analyst Dan Ives is already predicting a full Tesla-SpaceX merger by 2027. See, Tesla's whole vibe lately has been less about electric cars and more "we're building AI robots and self-driving everything." SpaceX wants to put AI data centers in actual outer space. If you squint, both companies are basically saying the same thing: the future is AI, and we want to own it.

The risk for Tesla investors is that SpaceX's IPO is expected to value the company at around $2 trillion, but xAI burned through $13 billion last year building stuff, and it doesn't have a money-printing business like Google or Amazon to fall back on. If SpaceX stumbles, that could drag Tesla into the mess too. Something to keep an eye on.

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Remember when Meta spent $14.3 billion to poach the CEO of Scale AI and build a fancy new "superintelligence" team? Well, nine months later, they finally have something to show for it. It's called Muse Spark, and Meta's stock jumped about 7% on the news.

Here's what you need to know: Muse Spark isn't trying to be the smartest AI on the planet. Meta is being pretty honest, saying that it can't compete with OpenAI or Google on stuff like coding. Instead, they built something fast, efficient, and good enough at everyday tasks like analyzing photos of your lunch to estimate calories or helping you plan a vacation. Think of it as a solid B+ student who actually shows up on time.

The bigger picture is that Meta is spending an absolutely wild amount of money on AI. We're talking between $115 billion and $135 billion in 2026 alone, which is almost double what they spent last year. That's a lot of pressure to prove these investments aren't just expensive science experiments.

What's really interesting is that Meta plans to eventually sell access to Muse Spark to other companies through an API. Basically, a paid feature for developers to plug into their software or online services. It's a new revenue stream they've never really had before, and if it takes off, it could help justify all those billions they're burning through. The model will also power the AI assistants across Instagram, Facebook, WhatsApp, and those Ray-Ban smart glasses Zuck really wants you to care about.

In this episode of This Week in Tech, the hosts dive into a landmark courtroom moment for Silicon Valley, where giants like Meta and Google face liability for social media “addictiveness.”

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That’s all for today. Write us and let us know your thoughts on the market, the newsletter, or the weather—we’d just love to hear from you.

Till next time,
— Brandon and Blake