GenAI Daily - February 10, 2026: SpaceX-xAI $1.25T Mega-Merger, Apple-Google AI Partnership, OpenAI's Enterprise Push
Top Story
SpaceX Acquires xAI in Historic $1.25 Trillion Merger
Elon Musk combined SpaceX and xAI in a deal that values the enlarged entity at $1.25 trillion, creating the largest merger in history. The record-setting transaction values SpaceX at $1 trillion and xAI at $250 billion, according to documents viewed by CNBC.
Musk announced the deal in a blog post Monday, saying he's creating "the most ambitious, vertically-integrated innovation engine on (and off) Earth, with AI, rockets, space-based internet," and the X social media platform. The main reason for the merger, he said, is to better build "orbital data centers."
Musk estimates over the next two to three years that the cheapest way to generate AI compute will be in space. "The capabilities we unlock by making space-based data centers a reality will fund and enable self-growing bases on the Moon, an entire civilization on Mars, and ultimately expansion to the Universe," he concluded.
The deal comes ahead of a highly anticipated blockbuster initial public offering for SpaceX later this year. News of SpaceX's potential 2026 IPO first broke in December, with Musk calling a report about the planned offering "accurate" shortly thereafter. The Financial Times previously reported that Musk is preparing the debut for mid-June to time with his birthday and a planetary alignment.
Why it matters: This merger consolidates Musk's control over critical 21st-century infrastructure - dominant launch systems, global satellite internet, and leading AI models - while providing xAI with the capital needed to compete against OpenAI and Anthropic in the $600 billion AI infrastructure race.
Key Developments
Apple-Google Partnership Redefines AI Landscape
Apple and Google have entered into a multi-year collaboration under which the next generation of Apple Foundation Models will be based on Google's Gemini models and cloud technology. These models will help power future Apple Intelligence features, including a more personalized Siri coming this year.
Bloomberg reported that Apple was planning to pay about $1 billion a year to utilize Google AI. The deal is another major indicator of growing trust in Google's accelerating AI agenda and comeback against OpenAI.
A Gemini-powered version of Siri will come as soon as February, according to a January Bloomberg report, which also said that Apple will be leaning on Google's infrastructure for AI features later this year.
Impact: This partnership gives Google unprecedented access to Apple's 2.5 billion devices while helping Apple catch up in AI after years of delays with Siri improvements.
OpenAI Launches Enterprise Agent Platform
OpenAI announced the launch of OpenAI Frontier, an end-to-end platform designed for enterprises to build and manage AI agents. It's an open platform, which means users can manage agents built outside of OpenAI too.
OpenAI said Frontier is initially launching to a small set of customers. Initial users include organizations like Uber, State Farm, Intuit and Thermo Fisher Scientific. The company said broader availability is coming over the next several months.
OpenAI followed with GPT-5.3-Codex, its "most capable agentic coding model" so far. According to OpenAI, Codex now runs about 25% faster and handles long-running developer and ops workflows with much more autonomy. OpenAI simultaneously launched OpenAI Frontier, a full enterprise platform for building, deploying and managing AI agents across internal business systems.
Impact: OpenAI signals its shift from consumer chat to enterprise automation, directly competing with Salesforce Agentforce and Microsoft Copilot in the lucrative B2B market.
OpenAI Signs $10 Billion Compute Deal with Cerebras
Cerebras plans to deliver up to 750 megawatts of computing power to OpenAI through 2028 in a deal worth over $10 billion. The arrangement is worth over $10 billion, according to people close to the company.
The deal will help diversify Cerebras away from the United Arab Emirates' G42, which accounted for 87% of revenue in the first half of 2024. "Cerebras adds a dedicated low-latency inference solution to our platform," Sachin Katti, who works on compute infrastructure at OpenAI, wrote in the blog. "That means faster responses, more natural interactions, and a stronger foundation to scale real-time AI to many more people."
Impact: This massive deal positions Cerebras as a serious alternative to NVIDIA while giving OpenAI crucial compute diversity ahead of its rumored IPO at up to $1 trillion valuation.
Funding & Deals
- Nscale - $2 Billion Funding Round:
AI hyperscaler Nscale reportedly aims to raise $2 billion in a funding round. The company is talking with investors but could still decide not to proceed with a deal, Bloomberg reported Thursday, citing unnamed sources.
OpenAI selected Nscale to support its UK and Norway Stargate projects. Microsoft, meanwhile, is working with Nscale on a $10bn Portugal data center project at the Start Campus in Sines.
- Cerebras - $1 Billion Pre-IPO Round:
On Tuesday, it was reported that the company was in talks to raise another billion dollars at a $22 billion valuation. It's also worth noting that OpenAI's CEO, Sam Altman, is already an investor in the company and that OpenAI once considered acquiring it.
Tomorrow's Watch List
- Apple Siri Gemini Launch:
A Gemini-powered version of Siri will come as soon as February, according to a January Bloomberg report
- Google Earnings Call: Focus on Apple partnership financial details and Gemini adoption metrics
- SpaceX IPO Filing: Expected regulatory filings for mid-2026 public offering
Related reading: Check out this week's [Deep Insights analysis] for strategic context on mega-mergers and enterprise AI adoption patterns.
