SpaceX (get the details) Weighs Buying Data from Troubled Startups for AI Training
SpaceX has held informal internal talks about acquiring customer and operational records from troubled or defunct startups to enhance its AI models, according to a report by Bloomberg.
The buyer in question is SpaceXAI, previously known as xAI, responsible for training Grok, an AI model. This initiative has sparked interest due to its potential implications for data privacy and regulatory considerations.
Background
- Training Data: SpaceXAI aims to obtain cheap operational data and customer insights to feed into Grok.
- Legal Inquiry: The unit's training of Grok on European user posts has been under investigation by Ireland's Data Protection Commission since April 2025.
- Method vs. Auction: Unlike a specific auction, SpaceXAI is exploring a method for acquiring data from defunct companies.
Key Points:
- Change in Strategy: SpaceXAI has previously trained Grok using posts from X and internal "AI tutors." However, this new approach involves considering customer records from dead companies.
- European Privacy Concerns: The purchase of such data raises privacy questions, especially given Ireland's ongoing investigation into the lawful processing of EU/EEA users' public posts for AI training.
- Musk's Vision: Elon Musk has expressed his ambition to train Grok on vast amounts of SpaceX information, indicating a broader strategy that includes external data sources.
- Privacy Notice: SpaceXAI's European privacy notice justifies its practices based on legitimate interests, specifying a US entity as the controller for European users' data processed in American data centers.
- Legal Challenges: The consent and lawful basis for using such data become complex, especially considering the mixed record of SpaceXAI regarding data collection (e.g., requesting staff tax returns in exchange for $420 without payment).
By Ana Maria Constantin, an expert in digital marketing, product management, and branding & identity.