After dismissing Musk’s mega merger yesterday (when RCR was sub-sea), as stuff for the mainstream press, Sulagna has a thoughtful write-up today – which asks what it’s all for. For my money (which is not a lot), I’ll go with Swapnil Amin, an ex-Tesla director, quoted from LinkedIn in the piece below, that the move is a financial rescue – to bring the highly profitable SpaceX and the cash-burning xAI under one roof, with a view to a future IPO. Amin writes: “Every headline [that] says ‘Musk is consolidating power’ [is]… the wrong story. Here’s the real one: xAI burns $1bn per month. It can’t IPO alone – not when OpenAI is raising $100bn at $830bn with 10x the revenue. So Musk did what he always does: he restructured the capital stack.”
And so Musk can “freely pour SpaceX’s capital into his laboring AI business” – as Sulagna writes. But space tech is everywhere, today – mostly because of Musk. There is a piece by Juan Pedro about China’s own space race, and links to news releases from Amazon, requesting an extension from the FCC because of launch shortages and other red tape (‘the dog ate my homework’), plus from Space X (again and again), asking the same organisation to approve a million solar-powered satellites to serve as orbital AI data centers (a likely story), and working via its Starlink subsidiary with masOrange in Spain to test direct-to-device services. It’s busy up there; just see below.
Meanwhile, I would like to draw your attention to the first instalment in a brand new Analyst Angle series from ABI Research – ABI on cloud, when ABI on AI might be neater; we’ll have a word – where Leo Gergs presents some new findings: that there will be a staggering six-fold jump in data center IT capacity by 2035 (to the tune of 147 GW) and that telcos should watch out. Read Leo’s piece to find out why.
James Blackmann
Executive Editor
RCR Wireless News
RCR Top Stories
Biggest merger ever: Elon Musk has announced the unlikely merger of his SpaceX and xAI businesses, valuing the combined entity at a $1.25 trillion – making it the ‘biggest’ firm on the planet? What does it set out to do, and what does it achieve?
Telcos, be warned: A six-fold jump in data center IT capacity by 2035 – to the tune of 147 GW – is being driven by AI workloads, and leading to a tectonic shift in tech. It should give the telco industry serious pause, writes ABI Research.
Bring the power! Data centers are adopting ‘bring-your-own-power‘ (BYOP) strategies to bypass grid constraints and meet surging AI energy demand. Operators are building on-site generation amid grid delays and regulatory hurdles.
China eyes space AI: China plans to deploy AI data centers in space over the next five years, aiming to shift energy-intensive computing workloads into orbit and build a solar-powered ‘space cloud’ as part of its long-term tech strategy.
Rakuten O-RAN: Rakuten Mobile is to deploy 1Finity’s open RAN massive MIMO radios at scale to boost 5G capacity and coverage in Japan, reinforcing its strategy around cloud-native, virtualized and open network architectures.
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Beyond the Headlines
SmarTone goes 5G-A: SmarTone has selected Ericsson’s 5G Advanced tech to improve network efficiency, enable programmable services, and support differentiated connectivity – as it looks to align performance, costs, monetization.
Hyper-scaling the depths: Google and Meta discuss how AI is reshaping demand for submarine cables, driving hyperscaler-led builds, stressing legacy systems, and creating new regulatory and supply-chain challenges for the industry.
State of US networks: Ookla’s latest second-half 2025 report crowns T-Mobile US as the top mobile network, highlights AT&T’s fiber performance and shows Verizon leading on coverage nationwide.
AI cap-ex tensions: Real AI proofs and benefits are needed to allay consumer, employee, and policymaker concerns about AI infrastructure – cap-ex tensions are mounting as the physical demands of data centers collide with digital expectations.
6 GHz snapshot: Ninety-seven countries now authorize some portion of 6 GHz, up from 62 last cycle. But only a subset allows the full 1200 MHz, making global harmonization a gating factor for next-gen Wi-Fi’s competitiveness.
What We're Reading
KKR-Singtel buys STT: KKR and Singtel will acquire the remaining 82% of ST Telemedia (STT) Global Data Centres for about $5 billion, valuing it at almost $11 billion. The move will expand their digital infrastructure to meet cloud/AI demand.
VMO2 buys Netomnia: Virgin Media O2’s owners, Telefónica and Liberty Global, are set to buy UK broadband rival Netomnia in a £2 billion deal aimed at closing the gap with BT’s Openreach and boosting competition in the UK broadband market.
SpaceX solar satellites: SpaceX has asked the FCC to approve up to one million solar-powered satellites to serve as orbital AI data centers, tapping sunlight to meet soaring compute demand and improve energy efficiency for AI infra.
Amazon Leo extension: Amazon has asked the FCC for a two-year extension to meet its deadline for its Amazon Leo satellite network, citing rocket and launch shortages and regulatory timing challenges, aiming to avoid losing spectrum rights.
MasOrange tests Starlink: MasOrange and Starlink will test D2C satellite-to-mobile connectivity in Spain, starting with a technical trial in Valladolid, complementing terrestrial coverage so phones switch to Starlink when ground signal is lost.
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