Summary

  • SpaceX's AI division is informally discussing the acquisition of customer and operational data from defunct startups to enhance Grok.
  • This strategy mirrors Google's $10 million acquisition at a bankruptcy auction for Spirit Airlines' records.
  • In August, SpaceXAI informed staff that Grok would be trained using all of SpaceX's internal data, with Musk indicating that this model would encapsulate their identities.

Internally, SpaceX has been considering purchasing the remaining customer data from startups that have gone out of business. This approach differs from licensing data from active companies, as it focuses on acquiring the digital remnants of defunct firms.

The discussions are taking place within SpaceXAI, the artificial intelligence arm established after the merger of SpaceX and xAI in February. Sources familiar with the conversations told Bloomberg that these talks are informal and may not lead to any concrete action. However, the concept is logical for an AI lab eager to advance its capabilities.

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The underlying goal is to provide cost-effective training data for Grok. AI models rely on training data—comprised of text, code, and records that improve their predictive abilities—and high-quality data, such as authentic business records, is becoming increasingly costly. In contrast, the data from a defunct company is seen as a more affordable option.

Google has previously pursued a similar strategy, having spent $10 million at a bankruptcy auction to acquire Spirit Airlines' internal records after the airline ceased operations. This acquisition provided Google with around 100 million emails, 500 million Microsoft Teams messages, and decades of employee files, all intended for AI training purposes.

This data belonged to actual employees who had signed on for their roles, unlike the data generated from AI experiments. A union representing flight attendants contested this in bankruptcy court, arguing that removing names from the records—known as "de-identifying"—does not prevent the possibility of reconstructing identities from years of internal communications. The legal battle is ongoing.

Under Chapter 11 bankruptcy proceedings, which allow failing companies to liquidate their assets to settle debts, customer databases are treated similarly to office equipment. They are auctioned off to the highest bidder, without consulting the customers, as there is no longer a company available to address their concerns.

SpaceXAI is interested in obtaining operational and customer data from startups that have ceased operations to continue refining Grok's understanding of real-world business dynamics.

During an all-hands meeting in August, Musk informed SpaceX employees that the company would not only seek external data but also utilize its own. He stated, “It will inherit your thoughts,” as reported by Fortune.

Musk presented this as a positive aspect, encouraging staff to view themselves as nurturing the model, which would absorb their perspectives along with their contributions, although he did not clarify which types of employee data would be utilized or how.

In July, SpaceX launched Grok 4.5, its first AI model post-merger with xAI, alongside plans for a significant acquisition valued at $60 billion for Cursor, and a new version of Grok is expected to be released soon.