SpaceX’s drop-off sees Elon Musk’s net worth fall $240 billion, same value as IBM

Reid Hoffman says SpaceX is ‘not an AI company’ & xAI is a ‘complete train wreck'

Reid Hoffman has watched the AI industry from virtually every vantage point—as a founder, a lead investor and as a decade-long Microsoft board member. So when he calls SpaceX’s AI strategy “buying your way into relevance” and describes xAI as “a complete train wreck,” it’s not a hot take from the sidelines, but a verdict from one of Silicon Valley’s most respected voices. “SpaceX isn’t an AI company,” Hoffman said in a conversation with Rana el Kaliouby on her Pioneers of AI podcast. “XAI is, as Elon himself has described, it’s a complete train wreck for its kind of building of foundational models and other kinds of things.” He also noted that all of its founders have left and it’s on its “third restart.”

SpaceX’s drop-off sees Elon Musk’s net worth fall $240 billion, same value as IBM

Elon Musk’s rocket company SpaceX made him a trillionaire, the first ever The historic IPO of the company earlier this month, which aims to make humanity a spacefaring civilization, saw the richest man on the planet’s net worth hit $1.1 trillion.

SpaceX selloff continues, wiping out $400B in market value

SpaceX shares saw a third straight day of losses on Monday, tumbling 16% and erasing $400 billion in market value — the second most in a single day for any company, per the Financial Times. Also on Monday, SpaceX signed a deal worth up to $6.3 billion to provide computing power to AI startup Reflection AI. Under the agreement, Reflection will pay $150 million a month from July through 2029 for access to hardware at SpaceX’s Colossus 2 data center.

Tesla turns superchargers into AI data centers

Tesla's recent expansion into the AI infrastructure market through its new "Megapod" trademark application. This project appears to be a modular, "plug-and-play" data center system that integrates servers, cooling, and power distribution into a single unit. Industry analysts suggest this move leverages Tesla’s expertise in energy storage, such as its successful Megapack batteries, to address the high power and cooling demands of modern AI training. While some speculate these modules could create a distributed computing network at Supercharger stations, others view it as a direct competitor to NVIDIA’s integrated hardware solutions like the GB200 NVL72. Ultimately, the documents highlight how Elon Musk is positioning his various companies to capitalize on the massive physical requirements of the ongoing artificial intelligence revolution.

Amazon Triggered a Global Ban on Anthropic

The 2026 launch and subsequent global suspension of Anthropic’s Claude Fable 5 and Mythos 5 AI models. Initially released as high-performance frontier models capable of advanced reasoning and long-horizon tasks, these tools were abruptly disabled following a U.S. government export control directive citing national security concerns. The government alleged that a narrow jailbreak could expose unrestricted cyber capabilities, a claim Anthropic disputed by noting that similar vulnerabilities exist across the industry. Developers utilizing the LiteLLM proxy to manage these models faced immediate service disruptions and were encouraged to implement fallback routing to available alternatives like Claude Opus 4.8. Technical reports also highlight a security advisory for specific LiteLLM versions that were compromised with malware during this period. Ultimately, the White House later softened its stance, indicating Anthropic was no longer a threat after the company complied with the mandatory shutdown.