According to Bloomberg, SpaceX has engaged in preliminary discussions regarding the acquisition of customer information and operational records from startups facing financial difficulties or closure to support training of its artificial intelligence systems. The entity responsible for these discussions is SpaceXAI, the same division currently facing regulatory examination by Ireland's Data Protection Commission concerning the lawfulness of how Grok was trained using posts from European users.
SpaceXAI, formerly known as xAI, seeks inexpensive operational datasets and customer information to enhance Grok's capabilities. These conversations remain preliminary and may not culminate in any actual transaction. SpaceX declined to provide a statement when contacted by Bloomberg regarding the matter.
The precedent cited is Google's $10 million proposal to acquire records from the defunct airline Spirit, which subsequently faced a higher counteroffer. That dataset comprised 100 million emails and 500 million Teams messages. SpaceXAI's approach differs in that it describes a general methodology rather than participating in a specific auction process.
This direction represents a departure from prior training methods. Grok has previously been trained using posts from X and contributions from internal specialists referred to as AI tutors. Recruitment for that team was halted in June, after which Jack Garabedian, a Starlink employee, assumed leadership of the initiative.
Acquiring a defunct company's customer database introduces a distinct category of information with its own set of complications. Within the European context, such an acquisition presents heightened regulatory exposure. Ireland's Data Protection Commission initiated an investigation in April 2025 into whether the processing of public posts from EU and EEA users to train Grok models complied with data protection law. The regulator had previously invoked emergency High Court authority against X in August of the previous year.
The central question posed by the regulator at that time would inevitably resurface in connection with any data acquisition. Elon Musk has been explicit about the broader strategic vision. "We are going to be training Grok on the sum total of all SpaceX information," he stated to employees in August, as reported by Bloomberg. He further indicated that the model would be trained on staff members themselves.
This encompasses Musk's own workforce. Purchasing records from a defunct startup would extend this approach to encompass other organizations' customers.
SpaceXAI's privacy notice for European users indicates reliance on legitimate interests as justification for model enhancement, designating a US-based entity as the data controller for European users. All data processing occurs within American data centers.
According to the European Data Protection Board's 2024 guidance, this legal basis depends partly on what individuals would reasonably anticipate. A customer of a company that has ceased operations holds no reasonable expectations regarding Grok. Consent cannot transfer alongside a database. The acquiring entity assumes the role of new controller and must establish its own lawful basis—a challenge more complex than simply negotiating price. SpaceXAI's track record with data it has directly collected presents mixed results, having solicited tax returns from staff in exchange for $420 without subsequently delivering payment.
Source: The Next Web
