Elon Musk is pursuing the purchase of Mesh Optical Technologies, a startup spun out by former SpaceX engineers focused on optical transceivers for AI data centers. This acquisition would enhance Musk’s control over a critical segment of the AI supply chain, as Mesh develops technology that connects high-performance GPUs with greater efficiency and security.
Mesh Optical Technologies emerged from stealth in early 2026 with significant funding to scale production to approximately 1,000 units daily within a year. Its founders, who previously worked on Starlink satellite optical communications at SpaceX, emphasize the strategic importance of U.S.-based supply chains, particularly in a sector largely dominated by Chinese suppliers. This national security framing heightens regulatory scrutiny, prompting the Federal Trade Commission to conduct an expedited antitrust review of Musk’s planned deal.
The company’s optical transceivers aim to reduce power consumption for GPU clusters by a notable margin, which holds substantial appeal for operators of energy-intensive data centers. Achieving a 3% to 5% decrease in power usage not only translates into lower operating costs but could also increase the competitiveness of Musk-controlled platforms that integrate AI compute resources.
Mesh’s technology aligns with broader moves by SpaceX to expand beyond aerospace and satellite launches into terrestrial compute infrastructure. Recent agreements between SpaceX and AI companies like Anthropic and Google underscore this shift, suggesting that Mesh’s optical hardware could bolster efficiency across SpaceX’s data centers and potentially support space-based systems in the future.
The Federal Trade Commission’s quick action on this and other Musk-related transactions, including a separate deal involving Valor Equity Partners, signals ongoing regulatory vigilance over Musk’s growing footprint across aerospace, communication networks, and artificial intelligence industries.