🚀 Musk Takes AI to Space

Plus a viral app collapsing while social networks go inhuman

February 02, 2026

Reading time: 5 minutes

🗞️In this edition

  • Musk Files to Launch 1 Million Satellites for AI Data Centers in Space

  • Sora App Losing Users Fast After Record Launch

  • Zuckerberg Says AI Content Will Replace Friends in Your Feed

  • In other AI news –

    • Tesla Reports First Revenue Decline, Ends Model S and X

    • Wells Fargo Hires AWS Leader to Run AI Strategy

    • OpenAI Shifts EU Strategy to Practical Adoption

  • 4 must-try AI tools

Three announcements this week that show where attention is actually flowing.

One visionary just filed plans to move computing infrastructure off Earth entirely. A breakthrough product that launched bigger than ChatGPT is quietly losing users faster than anyone expected. And the world's largest social network admitted what it's becoming isn't social anymore.

Each story reveals something about what's working versus what's being promised. About where the real investment goes when the cameras turn off. About what people actually want versus what companies insist they should want.

The pattern connects if you know where to look.

This edition shows you what the biggest moves really mean and why the timing of each one matters more than the announcements themselves.

What's happening:

SpaceX filed with the FCC on Friday requesting permission to launch one million satellites that would orbit Earth and harness solar power to run AI data centers in space. The filing came one day after Reuters reported SpaceX and xAI are discussing a merger ahead of a planned IPO this year.

Currently, only about 15,000 satellites orbit Earth total. SpaceX is asking for approval to launch 67 times that number.

The company says these satellites will use near constant solar power with minimal maintenance costs. This isn't just about internet connectivity anymore.

A merger between SpaceX and xAI would give fresh momentum to orbital data centers as Musk battles Google, Meta, and OpenAI for AI supremacy. Data centers are the physical backbone of artificial intelligence, and they require massive amounts of power that's becoming harder to source on Earth.

Why this is important:

Think about what this really means for the next decade. Whoever controls the computing infrastructure that trains AI models controls AI itself.

The timing reveals everything. Ground based data centers face growing opposition from local communities over power consumption and environmental impact.

Texas and Virginia are already rejecting new data center proposals. Musk is solving the problem by leaving Earth entirely, going where there's unlimited solar power and no zoning boards to appease.

If SpaceX successfully deploys orbital data centers first, they'll have cost and energy advantages no ground based competitor can match. The company that gets there first doesn't just win this round, they own the infrastructure layer for whatever comes after AI.

Source: Tech Crunch

What's happening:

Sora hit 1 million downloads faster than ChatGPT despite being invite only. Then downloads dropped 32% in December and 45% in January to 1.2 million.

Consumer spending fell 32% month over month in January. The app is no longer ranked in the Top 100 free apps on the U.S. App Store.

The decline happened during the holidays when people typically install more apps. Sora has 9.6 million total downloads and $1.4 million in consumer spending.

OpenAI changed from opt out to opt in for copyright after studios threatened legal action. Users had been creating videos with SpongeBob and Pikachu which drove adoption, then OpenAI restricted it.

Why this is important:

This is what happens when viral growth meets operational reality. The launch proved people want AI video generation, but the restrictions that keep Hollywood happy kill the features that made it fun.

Think about the pattern here. Sora grew fastest when users could generate anything, including copyrighted characters. OpenAI signed a deal with Disney allowing their characters, but one studio's permission doesn't replace the creative freedom people actually wanted.

The competitive pressure is real. Google's Gemini and particularly its Nano Banana model helped boost Gemini AI app popularity. Meta AI launched Vibes video in October just as Sora was taking off.

OpenAI faces a choice between growth and legal safety. You can't have both when the core appeal is creating content that belongs to someone else. Every restriction that protects OpenAI from lawsuits makes the product less interesting to users.

Comments from the editor:

The December drop during the holidays tells you everything. That's when app downloads spike across the industry, and Sora went the opposite direction.

OpenAI built a product people loved, then systematically removed what made it loved. SpongeBob videos were copyright infringement, but they were also proof the product worked. Taking that away left a legally safe app nobody needs.

The Disney deal was supposed to fix this. It didn't move downloads at all. People don't want to make videos with Mickey Mouse under corporate restrictions, they want creative freedom AI promised them.

This reveals the fundamental tension in AI content generation. The technology works best when unrestricted, but unrestricted means lawsuits. Every company will hit this same wall, and none of them have solved it yet.

Source: Wio News

What's happening:

Mark Zuckerberg announced during Meta's earnings call that AI generated content will become the third era of social media after friends and creators. He said feeds will shift from showing posts people make to showing posts AI creates.

The Vibes app already generated 20 billion AI images. Users scroll through AI created videos similar to TikTok, and Meta is testing this across Facebook and Instagram.

Zuckerberg described future feeds as interactive worlds and games you create through prompts, then share or remix with friends. The algorithm will decide whether to show you text, video, creator posts, or AI generated content based on what keeps you engaged longest.

Meta revenue hit $51 billion this quarter, up 26 percent. The company is spending up to $169 billion in 2026 on AI infrastructure while human users post less and less on the platforms.

Why this is important:

This is Meta admitting the social network is dead and replacing it with an entertainment algorithm powered by machines. Friends posting life updates are becoming the minority of what you see.

Think about what this means in three years. The platform called Facebook won't show you what your friends are doing unless the algorithm decides their post beats AI generated content for engagement. That's not social media anymore, it's Netflix with a feed.

Zuckerberg needs this because human posting is declining. When people stop sharing, Meta loses the content that kept feeds active. AI solves that by generating infinite content the algorithm knows will keep you scrolling.

The real shift is who benefits from your attention. When you watched friend posts, your friends got validation. When you watch creator content, creators build audiences. When you watch AI content, Meta captures 100 percent of the value while paying nobody for the content you consume.

  • Tesla Reports First Revenue Decline, Ends Model S and X – Revenue fell 3 percent for the first time ever while Musk announced killing the Model S and X to convert their Fremont factory line into a million-unit Optimus robot facility, investing $2 billion in xAI despite shareholders voting no, and planning $20 billion in spending for 2026 as the company officially stops being a car maker.

  • Wells Fargo Hires AWS Leader to Run AI Strategy – The bank poached Faraz Shafiq from Amazon Web Services to oversee enterprise-wide AI products, reporting to Saul Van Beurden who now holds dual titles as Head of AI and Co-CEO of Consumer Banking, a structure that reveals how seriously Wells Fargo is betting AI transforms financial services.

  • OpenAI Shifts EU Strategy to Practical Adoption – After two years of experimentation and demos, OpenAI's finance chief says 2026 will focus on helping customers actually use AI at scale rather than showcasing what it can do, signaling a shift from novelty to business outcomes as enterprises demand measurable returns before committing billions.

  1. VideoMyListing - An AI-powered tool that creates engaging videos to promote listings on various platforms like Airbnb, Etsy, and more

  2. Kansei.app - An AI language learning platform that offers personalized language practice through immersive conversations with lifelike personas

  3. Avaturn - Allows developers to create realistic and customizable 3D avatars for their metaverse, game, or app

  4. ReachInbox - An email outreach tool that helps businesses maximize their outreach potential

The transformation isn't subtle anymore.

Infrastructure moving to space while products lose momentum on Earth. Feeds replacing friends with algorithms. Growth numbers that hide what's actually declining underneath.

What connects these stories is the gap between vision and execution. Between what gets announced and what people actually use. Between spending that forces the future and adoption that reveals what the present actually wants.

The winners over the next three years won't be the companies with the biggest announcements. They'll be the ones who figure out what people need before the hype cycle moves on and leaves them behind.

Pay attention to what's declining as much as what's growing. That's where the real story lives.

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