Big week. Musk merged SpaceX with xAI in a $1.25 trillion deal. Big Tech announced $600 billion in AI spending and markets got nervous. Anthropic bought Super Bowl ads to go after OpenAI. GitHub opened Agent HQ so you can pick between Claude and Codex. Docker dropped an AI agent. And a supply chain attack hit a popular coding tool. Here’s what happened.
Top Stories This Week
SpaceX Acquires xAI, Creating $1.25 Trillion Business -
On February 7, Elon Musk merged SpaceX with xAI, creating a business worth $1.25 trillion.
The numbers:
SpaceX is valued at $1 trillion. xAI is valued at $250 billion. Musk owns about 44% of the newly enlarged company. An IPO is expected in June 2026, timed with Musk’s birthday and a planetary alignment.
Why merge rockets and AI?
Musk wants to move datacentres into space. The idea is to put as many as a million satellites into orbit to form vast, solar-powered datacentres. AI companies are too dependent on earth-bound datacentres that use massive amounts of energy, he says. The solution: space-based solar power.
The technical challenge:
Experts say this would need a “planet-wide distributed computer composed of many satellites” working together. There are problems to solve: solar radiation, maintenance, and connection quality between orbiting devices. Shipping components to space is complex and expensive.
Why xAI needs this:
xAI burned through $13 billion last year. Unlike Meta, Amazon, Microsoft, and Google, it doesn’t have a cash-generating legacy business to fund AI development. SpaceX made about $8 billion in profit on $15-16 billion of revenue last year. Combining with SpaceX gives xAI access to cash and investors.
What SpaceX shareholders think:
Some investors aren’t happy. By folding in xAI, which has significant monthly cash burn, you change SpaceX’s financial profile overnight. The company goes from a straightforward rocket business to a complex AI play. But for long-term investors, this secures the most advanced AI “brain” for the most advanced hardware “body” in existence.
What’s included:
xAI includes Grok AI and X, the social media platform formerly known as Twitter. This adds regulatory scrutiny and political attention to SpaceX’s story.
What’s next:
Analysts are already talking about a potential Tesla-SpaceX merger. Both companies are currently worth $1.25 trillion. Some investors believe Musk will create a one-stop shop for investing in all his businesses.
Big Tech’s $600 Billion AI Spending Plans Rattle Investors
On February 6, Alphabet, Amazon, Meta, and Microsoft collectively announced around $600 billion in AI capital spending plans.
What happened:
These companies are planning massive investments in AI infrastructure. Alphabet specifically said capital spending will soar on its AI drive. The announcements sent shockwaves through markets.
Why investors are nervous:
This is a lot of money. Investors are worried about whether these investments will pay off. The spending comes at a time when companies are also cutting jobs and focusing on efficiency. It’s creating uncertainty about profitability.
The context:
AI infrastructure is expensive. Datacentres, computer chips, and the energy to run them cost billions. But the question is whether companies can make money from AI fast enough to justify the spending.
What this means:
Markets got volatile. Bitcoin sank to a 16-month low before rallying back above $70,000. Tech stocks moved around as investors tried to figure out what this spending means for the future.
The bigger picture:
This is part of a larger trend. Companies are betting everything on AI. They’re spending money they don’t have yet, hoping AI will generate enough revenue to pay for it. It’s a risky bet, and investors know it.
Anthropic Buys Super Bowl Ads to Challenge OpenAI
Anthropic bought Super Bowl ad spots to directly challenge OpenAI.
What this means:
This is a major competitive move. Super Bowl ads are expensive and reach a huge audience. Anthropic is using them to position Claude against ChatGPT. It’s a bold marketing play in the AI race.
Why it matters:
Anthropic is going after OpenAI’s consumer market. Most people know ChatGPT. Fewer know Claude. Super Bowl ads change that. It’s a way to get in front of millions of people at once.
The timing:
This comes right after OpenAI launched Prism and other tools. Anthropic is responding by going big on consumer marketing. It’s also the same week Anthropic announced a partnership with Goldman Sachs for AI banking agents.
What to watch:
Will the ads work? Super Bowl ads are memorable, but they’re also expensive. Anthropic needs to convert viewers into users. That’s the real test.
Developer Tools & Platforms
GitHub Opens Agent HQ to Claude and Codex -
On February 4, GitHub made Claude and Codex available in public preview on Agent HQ.
What is Agent HQ?
It’s GitHub’s platform for AI coding agents. Before this, you could only use GitHub’s default models. Now you can pick between Anthropic’s Claude and OpenAI’s Codex for your coding tasks.
Who can use it:
Copilot Pro+ and Enterprise subscribers. It works in GitHub and VS Code.
Why this matters:
Choice matters. Different models are good at different things. Some developers prefer Claude’s approach. Others like Codex. Now you can switch between them based on what you’re working on.
The bigger picture:
This is GitHub opening up its platform. Instead of locking you into one model, they’re giving you options. It’s a smart move as the AI coding market gets more competitive. If you want to get the most out of AI coding assistants, check out our guide on using AI coding assistants effectively.
Claude Opus 4.6 GA for GitHub Copilot
On February 5, Claude Opus 4.6 became generally available for GitHub Copilot. On February 7, a fast mode version entered public preview.
What changed:
Anthropic’s latest model is now fully available in Copilot. The fast mode gives you speed when you need it, trading some quality for quicker responses.
Why developers care:
Opus 4.6 is Anthropic’s most capable model. Having it in Copilot means better code suggestions, better explanations, and better help with complex tasks. The fast mode is useful when you just need quick answers.
The trend:
This is part of Anthropic’s push into developer tools. They’re competing with OpenAI for the coding market. GitHub is the battleground. For tips on maximizing productivity with AI coding assistants, see our practical guide.
Docker AI Agent Beta Launch -
On February 5, Docker launched its AI Agent, codenamed Project Gordon, in beta.
What it does:
It embeds an AI assistant directly into Docker Desktop and CLI. You can ask it to help with Dockerfiles, container management, and debugging. It understands Docker commands and can suggest fixes.
How it works:
You talk to it in natural language. It helps you write Dockerfiles, troubleshoot containers, and understand Docker concepts. It’s like having a Docker expert in your terminal.
Why this matters:
Docker is everywhere. Most developers use it. Having AI built into Docker makes it easier to work with containers. You don’t need to remember every Docker command or flag.
The beta:
It’s in beta, so expect some rough edges. But it’s a sign of where Docker is going. AI assistance is becoming standard in developer tools. If you’re building AI agents yourself, our guide to building AI agents covers the architecture and patterns that make them work.
Dependabot Proxy Goes Open Source
On February 3, GitHub open-sourced the Dependabot Proxy under an MIT license.
What is Dependabot Proxy?
It’s the component that helps Dependabot check for security vulnerabilities in dependencies. GitHub uses it internally, and now anyone can use it too.
Why open source it:
GitHub wants more people to use it. Open sourcing it means other tools can integrate with it. It also means the community can improve it.
The impact:
This makes supply chain security more accessible. If you’re building a tool that checks dependencies, you can use Dependabot Proxy instead of building your own.
Also on February 3:
Dependabot added OIDC authentication support. This improves security for automated dependency updates. OIDC is built on OAuth 2.0 - if you want to understand how OAuth works, check out our OAuth 2.0 guide.
Other GitHub Updates
Pinned comments on Issues (February 5) - You can now pin important comments on GitHub Issues. Useful for highlighting key information or decisions.
CodeQL 2.24.1 (February 6) - Improved Maven private registry support and better query accuracy. CodeQL is GitHub’s code analysis tool for finding security vulnerabilities.
GitHub Actions updates (February 5) - Self-hosted runner minimum version enforcement was extended. This helps ensure runners are up to date and secure.
Copilot Chat on web (February 4) - Now shows tool calls and other improvements. Better visibility into what Copilot is doing.
Industry News
Goldman Sachs Teams Up with Anthropic for AI Banking Agents
On February 7, Goldman Sachs announced a partnership with Anthropic to automate banking tasks using Claude AI agents.
What they’re building:
AI agents that can handle banking tasks automatically. Think loan processing, risk analysis, compliance checks. The kind of work that takes humans hours could be done by AI in minutes.
Why this matters:
Goldman Sachs is a major bank. If they’re using AI agents for banking, other banks will follow. This could change how financial services work. To understand how these AI agents work under the hood, see our guide to building AI agents.
The bigger picture:
This is part of Anthropic’s enterprise push. They’re going after big companies that need AI for business processes. Banking is a natural fit because it’s full of repetitive, rule-based tasks.
What to watch:
Will it work? Banking is heavily regulated. AI agents need to be accurate and compliant. One mistake could cost millions. But if Goldman Sachs can make it work, it’s a huge win for Anthropic.
Block Cutting Up to 10% of Staff
On February 8, Jack Dorsey’s payments company Block announced it’s cutting up to 10% of its workforce.
The numbers:
Up to 10% of employees. Block has around 13,000 employees, so that’s roughly 1,300 jobs.
Why it’s happening:
Block, which owns Square and Cash App, is restructuring. Like other tech companies, they’re focusing on efficiency and cutting costs.
The context:
Tech layoffs continue. Block joins a long list of companies cutting jobs while investing in AI. It’s the same pattern we’ve seen all year.
What this means:
More people out of work. The tech job market is still tough. Companies are cutting jobs even as they invest billions in AI. It’s a confusing time for tech workers.
Vista Equity and Intel Lead Investment in AI Chip Startup SambaNova
On February 7, Vista Equity Partners and Intel led an investment round in SambaNova, an AI chip startup.
What is SambaNova:
They build AI chips and systems. They’re competing with Nvidia in the AI hardware space.
Why this matters:
AI chips are in high demand. Nvidia dominates, but there’s room for competition. SambaNova is trying to build chips that are better for specific AI workloads.
The investors:
Vista Equity is a major private equity firm. Intel is trying to get back into the AI chip game. This investment gives SambaNova more money to compete.
The bigger picture:
The AI chip market is heating up. Everyone wants alternatives to Nvidia. SambaNova is one of several companies trying to break in.
Nvidia’s ByteDance Chip Sale Hinges on Trump Conditions
Nvidia’s ability to sell chips to ByteDance depends on conditions set by the Trump administration.
What’s happening:
The US government controls what chips can be sold to Chinese companies. ByteDance, which owns TikTok, wants Nvidia chips for AI. But the sale depends on government approval.
Why it matters:
ByteDance is a huge company. They need AI chips to compete. If they can’t get Nvidia chips, it hurts their AI efforts. It also hurts Nvidia’s revenue.
The politics:
This is part of the US-China tech war. The government is trying to limit China’s access to advanced AI technology. But it’s also limiting US companies’ ability to sell.
What to watch:
Will the conditions be met? ByteDance needs to convince the government that selling them chips won’t help China’s military or surveillance. It’s a delicate balance.
TikTok Charged with Breaching EU Rules Over Addictive Features
The EU charged TikTok with breaching online content rules over the app’s addictive design.
What the EU says:
TikTok’s features are designed to be addictive, especially for young users. The app uses algorithms and design patterns that keep people scrolling. This violates EU rules about protecting users, especially children.
What TikTok faces:
Potential fines and requirements to change how the app works. The EU can fine companies up to 6% of global revenue for serious violations.
Why this matters:
This is part of a larger push to regulate social media. The EU is taking a hard line on platforms that harm users, especially kids. TikTok isn’t the first, and it won’t be the last.
The impact:
If TikTok has to change its design, it could affect engagement. Less addictive features might mean less time on the app. That could hurt TikTok’s business model.
Security & Open Source
Open-Source Coding App Hit by Chinese-Linked Supply Chain Attack
On February 3, a popular open-source coding application was targeted in a Chinese-linked supply chain attack.
What happened:
Attackers compromised the application and inserted malicious code. Anyone who downloaded or updated the app got the malicious code too. This is a supply chain attack - you attack the tool developers use, and you get access to all their projects.
Why it’s dangerous:
Supply chain attacks are hard to detect. Developers trust the tools they use. If a tool is compromised, it can spread to thousands of projects. This particular attack was linked to Chinese actors.
What developers should do:
Keep your tools updated. Check for security advisories. Use tools that verify code integrity. And be careful about what you install.
The bigger picture:
Supply chain attacks are increasing. As developers rely more on open-source tools, attackers target those tools. It’s a growing threat that the industry needs to address.
cURL Shuts Down Bug Bounty Due to AI Spam
On February 6, the cURL project shut down its bug bounty program because it was flooded with AI-generated low-quality reports. This was covered in Google’s “This Week in Open Source #14” blog post.
What happened:
People used AI to generate bug reports and submitted them to cURL’s bug bounty program. The reports were low quality and took time to review. The maintainers couldn’t handle the volume.
Why it matters:
This is a real problem. AI makes it easy to generate lots of content, but that content isn’t always good. Bug bounty programs rely on real security researchers finding real bugs. AI-generated spam clogs the system.
The impact:
cURL is a critical piece of internet infrastructure. It’s used everywhere. Having a bug bounty program helps keep it secure. But if the program is flooded with spam, it doesn’t work.
The lesson:
AI is making some problems worse. It’s easier than ever to generate content, but that doesn’t mean the content is useful. Bug bounty programs need better filters to handle AI-generated submissions.
What This Week Teaches Us
Space is the new frontier for AI: Musk’s plan to put datacentres in space sounds crazy, but it addresses a real problem. AI needs massive amounts of energy. Solar power in space could work, but the technical challenges are huge. Whether it happens or not, it shows how desperate companies are for AI compute.
Big Tech is all-in on AI: $600 billion in spending plans shows how serious these companies are. They’re betting everything on AI. Investors are nervous because no one knows if it will pay off. But the companies don’t have a choice - if they don’t invest, they’ll fall behind.
AI competition is getting expensive: Anthropic buying Super Bowl ads shows how competitive the AI market is. Companies are spending millions on marketing to win users. It’s not just about having the best model - it’s about getting people to use it.
Developer tools are opening up: GitHub letting you choose between Claude and Codex is a sign of the times. Lock-in is out. Choice is in. Developers want to pick the best tool for the job, not be stuck with one option.
Supply chain attacks are a real threat: The attack on the open-source coding app shows how vulnerable the ecosystem is. One compromised tool can affect thousands of projects. Developers need to be more careful about what they use.
AI is creating new problems: cURL shutting down its bug bounty because of AI spam is a perfect example. AI makes it easy to generate content, but that content isn’t always useful. Tools and processes need to adapt to handle AI-generated noise.
The Numbers That Matter
- $1.25 trillion - Combined value of SpaceX-xAI merger (SpaceX $1T, xAI $250B)
- $600 billion - Big Tech’s collective AI spending plans announced this week
- $13 billion - Amount xAI burned through last year
- $8 billion - SpaceX’s profit last year on $15-16B revenue
- 44% - Musk’s ownership stake in the enlarged SpaceX-xAI entity
- 10% - Block’s workforce reduction (up to 1,300 jobs)
- $70,000 - Bitcoin’s price after rallying from 16-month low
- 1 million - Number of satellites Musk wants to put in orbit for space datacentres
- 100 gigawatts - Annual AI capacity Musk wants to add (current global capacity is 59GW)
- June 2026 - Expected IPO date for SpaceX-xAI
- 6% - Maximum EU fine percentage of global revenue for serious violations
Quick Hits
SpaceX-xAI merger - $1.25 trillion deal to move AI datacentres into space using solar-powered satellites.
Big Tech $600B spending - Alphabet, Amazon, Meta, Microsoft announce massive AI infrastructure investments, rattling markets.
Anthropic Super Bowl ads - Direct challenge to OpenAI with expensive Super Bowl marketing campaign.
GitHub Agent HQ - Developers can now choose between Claude and Codex for coding agents in Copilot Pro+ and Enterprise.
Claude Opus 4.6 GA - Anthropic’s latest model now fully available in GitHub Copilot, with fast mode in preview.
Docker AI Agent beta - Project Gordon embeds AI assistant directly into Docker Desktop and CLI.
Goldman Sachs + Anthropic - Partnership to automate banking tasks using Claude AI agents.
Block layoffs - Jack Dorsey’s company cutting up to 10% of staff as part of restructuring.
Supply chain attack - Popular open-source coding app compromised in Chinese-linked attack.
cURL bug bounty shutdown - Program closed due to flood of AI-generated low-quality reports.
Dependabot Proxy open source - GitHub releases Dependabot Proxy under MIT license.
SambaNova funding - Vista Equity and Intel lead investment in AI chip startup.
Nvidia-ByteDance deal - Chip sale depends on Trump administration conditions.
TikTok EU charges - App charged with breaching rules over addictive features.
Bitcoin volatility - Crashed to 16-month low then rallied back above $70K as markets reacted to AI spending news.
Wild week. The SpaceX-xAI merger is the biggest story - a $1.25 trillion bet on putting AI in space. Whether it works or not, it shows how far companies will go for AI compute. The $600 billion in Big Tech spending is equally crazy. Investors are right to be nervous. But the real story is how fast everything is moving. GitHub opening Agent HQ, Docker adding AI, Anthropic going after OpenAI - the developer tools space is heating up. And the supply chain attack is a reminder that security matters more than ever. Next week should be interesting.
See you next week.
